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A CRITICAL STUDY OF THE IMPACT OF
ARAB LEADERSHIP STYLES ON
ORGANISATIONAL & EMPLOYEES’
PERFORMANCE
على كل من األداء أساليب القيادة العربية لتأثيردراسة نقدية
للمؤسسةالوظيفي و التنظيمي
By
Mariam Juma Bualshawarib
Student ID: 90025
Dissertation submitted in partial fulfilment of
MSc in HRM (Masters in Human Resource Management)
Dissertation Supervisor
Professor Ashly H. Pinnington
February-2014
A CRITICAL STUDY OF THE IMPACT OF ARAB LEADERSHIP STYLES ON ORGANISATIONAL & EMPLOYEE’S PERFORMANCE
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DECLARATION
DISSERTATION RELEASE FORM
Student Name
Mariam Juma BuAlshawarib
Student ID
90025
Programme
MSc in Human Resource
Management
Date
28 Jan 2014
Title
A CRITICAL STUDY OF THE IMPACT OF ARAB LEADERSHIP
STYLES ON ORGANISATIONAL & EMPLOYEES’
PERFORMANCE
I warrant that the content of this dissertation is the direct result of my own work and
that any use made in it of published or unpublished copyright material falls within the
limits permitted by international copyright conventions.
I understand that one copy of my dissertation will be deposited in the University
Library for permanent retention.
I hereby agree that the material mentioned above for which I am author and copyright
holder may be copied and distributed by The British University in Dubai for the
purposes of research, private study or education and that The British University in
Dubai may recover from purchasers the costs incurred in such copying and
distribution, where appropriate.
I understand that The British University in Dubai may make that copy available in
digital format if appropriate.
I understand that I may apply to the University to retain the right to withhold or to
restrict access to my dissertation for a period which shall not normally exceed four
calendar years from the congregation at which the degree is conferred, the length of
the period to be specified in the application, together with the precise reasons for
making that application.
Signature
A CRITICAL STUDY OF THE IMPACT OF ARAB LEADERSHIP STYLES ON ORGANISATIONAL & EMPLOYEE’S PERFORMANCE
Page 3 of 139
A CRITICAL STUDY OF THE IMPACT OF ARAB
LEADERSHIP STYLES ON ORGANISATIONAL &
EMPLOYEES’ PERFORMANCE
على كل من األداء الوظيفي و التنظيمي أساليب القيادة العربية لتأثيردراسة نقدية
للمؤسسة
Dissertation Length: 22,990 words
(excluding references and appendices)
A CRITICAL STUDY OF THE IMPACT OF ARAB LEADERSHIP STYLES ON ORGANISATIONAL & EMPLOYEE’S PERFORMANCE
Page 4 of 139
ABSTRACT
Leaders plays vital role in ensuring high organizational performance. With an
appropriate balance of motivation, ability and opportunity given to individuals;
leaders promote excellent organizational performance. A fair balance of the equation
including leadership style, proper work environment, adequate policies and
procedures, tools to function and sufficient accountability, strong cultural values that
promote transparency and provide clear guidance on desired outcome is what’s
needed for employees to perform. Though studies on leadership roles in enhancing
performance amongst employees are ample in developed countries, there has been a
lack of research on this subject in the Middle East. Therefore, the researcher decided
to evaluate Arab leadership style, organizational performance and employee
performance in a country that is well known for its wealth and multi-national
companies such as Dubai. Unlike many other developing countries around the GCC,
Dubai seems more of a central hub that attracts people from developed and
developing countries to invest or even find a career. This fact allows the researcher to
have a stronger view on Arab leadership style and their impact on performance, as it
comes from various nationalities and expertise in the area.
The empirical research study used questionnaires with questions tailored
towards determining the relationship between: Arab leadership styles and employee
performance, which should indirectly determine the relationship between Arab
leadership style and organizational performance. Also, the research intent was to
identify the pattern of Arab leadership and the extent to which it has affected
organizational performance. In addition, the researcher was interested in finding out
more about potential factors responsible for low worker performance and how
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leadership style has affected labour management relations and productivity in four
selected small scale organizations that are grouped under one holding company.
After analysing the results using both qualitative and quantitative methods, it
is concluded that in order to accomplish the objectives of different organisations need
in Dubai, it is necessary that leaders: recognizes the needs of the workers; employs
appropriate motivational tools such as right leadership style using appropriate
leadership and management programs; providing workers with appropriate guidance
and working tools; develop an adequate performance management system that would
uncover sources of potential bias and accordingly incentives best performances.
Key words: organisations, leadership style, culture, performance, motivation and
organizational and employee performance.
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على كل من األداء الوظيفي و التنظيمي أساليب القيادة العربية لتأثير :دراسة نقدية ملخص
للمؤسسة
، التوازن المناسب بين الدافع نسبة من مع الوظيفي. في ضمان األداء و فعالا القادة دورا حيويايلعب
األداء الوظيفي و تنميةمهارات التفكير اإلبداعي تعزيز على قادةيعمل اللفرص لألفراد، إتاحة االقدرة و
، بيئة العمل المناسبة الرائدة/الناجحةبما في ذلك أسلوب القيادة المعايير السابقة فيتوازن ال القليل من .ميزتالم
يل وتخ ، بما في ذلكللعمل و المستلزمات المطلوبة دواتتوفر األوالسياسات و اإلجراءات المناسبة،
النتائجتقديم توجيهات واضحة بشأن ، التي تعزز الشفافية ةالراسخ و العادات، القيم الالزمةت لصالحياا
ة الراسخةالقياد دور. على الرغم من الدراسات حول ئهم المهنيأداالموظفون لتطوير حتاجه يالمرجوة هو ما
هناك نقص في األبحاث حول إل إننا نجدتعزيز األداء بين الموظفين وافرة في البلدان المتقدمة، تأسيس و في
في الشرق األوسط. لذلك، قرر الباحث تقييم أسلوب القيادة العربية، واألداء التنظيمي دول ا الموضوع في هذ
الجنسيات الشركات ذات نطاق واسع من حيث تعدد و تعدد اتثروبوافر ال دولة تتسمفي الوظيفيداء األ تنمية
دبي. خالفا للعديد من البلدان النامية األخرى في أنحاء دول مارات العربية المتحدة و باألخص مدينةكدولة اإل
البلدان مختلف أنحاء العالم سواء بدو أكثر من محور مركزي يجذب الناس من تمجلس التعاون الخليجي، دبي
. هذه حقيقة تسمح للباحث مستقبل مهني مستقر و متوازنستثمار أو حتى العثور على والنامية على اإلأالمتقدمة
خبرته الوافرةمن والذي ينبث ، الوظيفي على أسلوب القيادة العربية وتأثيرها على األداءبارزن يكون له رأي أ
ف الجنسيات والخبرات في المنطقة.مختل مع
جريبية تبحوث و استبيانات منها مختلف الدراسات و البحوث من أجل هذا البحث العلمي تم إستخدام
يجب بدورها أن ، والتيالوظيفيداء األالقيادة العربية و تحديد العالقة بين: أساليب لصا مع أسئلة مصممة خصي
لعربية و األداء التنظيمي. أيضا، كان القصد من العالقة بين أسلوب القيادة ا بناء بشكل غير مباشر علىتعمل
فة إلى ذلك، كان الباحث مهتما األداء التنظيمي. باإلضا تأثيرها علىتحديد نمط القيادة العربية و مدى البحوث
يعمل على أسلوب القيادة إن نخفاض أداء العاملين وكيفإة عن مسؤولالبمعرفة المزيد عن العوامل المحتملة
صغرة و ذات اإلنتاجية في أربع منظمات كذلك مدى تأثيرة على العالقات بين اإلدارة و العمالة و تأسيس
تحت شركة قابضة. تعملالتي و دومحدنطاق
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نه من أجل تحقيق أإلى تم اإلستنتاج ، األساليب النوعية والكميةمختلف ستخدامإبعد تحليل النتائج ب
فيتوظبحتياجات العمال؛ إ: يدرك القادة المنظمات المختلفة في دبي، فمن الضروري أنالمرجوة من هداف األ
ة يداراإلو القياديةبرامج الستخدام الرائدة بإ ةيب القياديلاساأل على سبيل المثال،أدوات تحفيزية مناسبة و تمكين
تطوير نظام مالئم إلدارة كما يلزم جيهات و أدوات العمل المناسبة ، تو بما يتطلبونه من، وتوفير العمال المالئمة
أفضل تكافأ حوافز تأسيسوفقا لذلك التي من شأنها أن تكشف عن مصادر التحيز المحتملة وو الوظيفي األداء
.األداءات
و األداء التنظيمي أخيرا التحفيز و، األداء، حضارة و تقاليدب القيادة، يلاأسالكلمات الرئيسية : المنظمات،
.الوظيفي
ACKNOWLEDGMENT
I am grateful to the former leaders of this respectful large UAE base company for
their timely response and advice during this study. I also extend my gratitude to the
human resources departments, of each entity for their continuous support in
organizing the gatherings and encouraging employees to attend the sessions.
Furthermore, I would like to thank the participants in my survey, who have willingly
shared their precious time during the process of interviewing.
A special thanks to my father, Emirates International Telecommunications LLC, my
current employer, and every individual, who inspired and encouraged me to pursue
my master’s degree and supported me through on-going advice and encouragement to
this day, without them I would not have done it.
I would like to express my greatest gratitude to Prof. Ashly, for his understanding and
continuous support and encouragement to achieve this as well as the useful ideas,
thoughts that have been exchanged at various occasions that helped me with this
study. And last but most certainly not least, I am grateful to God for His mercy that
made this possible.
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Table of Contents
DECLARATION ....................................................................................................................... 2
ABSTRACT ............................................................................................................................... 4
ACKNOWLEDGMENT............................................................................................................ 8
CHAPTER1: INTRODUCTION ............................................................................................. 11
1. Introduction ...................................................................................................................... 11
1.1. Research Questions ...................................................................................................... 14
1.2. Hypothesis ................................................................................................................... 14
1.3. Significance of the Study ............................................................................................. 14
1.4. Evaluation of the Study ................................................................................................ 15
1.5. Structure of the Dissertation ........................................................................................ 15
CHAPTER 2: LITERATURE REVIEW ................................................................................. 17
2. Introduction ...................................................................................................................... 17
2.1. Leadership Theories & Style ....................................................................................... 17
2.1.1. Transformational Leadership ................................................................................... 19
2.1.2. Transactional Leadership ......................................................................................... 21
2.2. Performance ................................................................................................................. 23
2.2.1 Individual Performance ............................................................................................. 24
2.2.2. Organizational Performance .................................................................................... 26
2.2.3 Leadership Style and Performance ............................................................................ 27
2.3. Organizational culture and performance ...................................................................... 31
2.3.1. Leadership, Organizational Culture & Performance ............................................... 35
CHAPTER 3: METHODOLOGY AND DIAGRAMIC MODEL OF THE HYPOTHESIS .. 41
3. Introduction ...................................................................................................................... 41
3.1. Research Methods ........................................................................................................ 44
3.2. Qualitative Data .......................................................................................................... 45
3.2.1. Expert Interview Schedule ........................................................................................ 46
3.3. Quantitative Data ........................................................................................................ 46
3.3.1. Questionnaire Design ............................................................................................... 47
3.3.2. Requirements of Questionnaire................................................................................. 48
3.3.3. Data Collection ......................................................................................................... 49
3.4. Process of the Sample .................................................................................................. 50
3.4.1. Questionnaire Content .............................................................................................. 51
3.4.2. Interview Content ...................................................................................................... 51
3.5. Content Analysis .......................................................................................................... 53
3.6. SPSS Analysis.............................................................................................................. 54
3.7. Difficulties and Mitigation Methods ............................................................................ 55
3.8. Professional, Legal and Ethical Issues ......................................................................... 55
CHAPTER 4: MAIN FINDINGS AND DATA ANALYSIS ................................................. 56
4. Introduction ...................................................................................................................... 56
4.1 Leaders Data Analysis .................................................................................................. 56
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4.1.1 Qualitative Data ........................................................................................................ 56
4.1.2 Summary of the Data Collected ................................................................................. 58
4.2 Employees Rating Data Analysis.................................................................................. 59
4.2.1 Demographic Summary ............................................................................................. 59
4.2.2 Reliability ................................................................................................................... 62
4.2.2.1 Leadership independent variable reliability: .......................................................... 62
4.2.2.2 Performance dependent variable reliability: .......................................................... 63
4.2.3 Correlation................................................................................................................. 63
4.2.4. Regression ................................................................................................................. 66
CHAPTER 5: DISCUSSIONS ................................................................................................ 80
5. Introduction ...................................................................................................................... 80
5.1. Qualitative Study (Leadership Styles) ......................................................................... 80
5.2. Quantitative Study (Leaders Rating) ........................................................................... 82
5.3. Quantitative Study (Employees Rating) ...................................................................... 83
5.4 Hypothesis1: There is a positive relationship between Arab leader transformational
leadership and employee performance................................................................................ 86
5.6 Hypothesis2: There is a negative relationship between Arab leader transactional
leadership and employee performance................................................................................ 87
5.7 Hypothesis3: Arab leadership styles (transformational and transactional) impact the
employee’s performance. .................................................................................................... 89
CHAPTER 6: RECOMMENDATIONS & CONCLUSION ................................................... 91
6. Introduction ...................................................................................................................... 91
6.1 Limitations of the Research .......................................................................................... 91
6.2 Recommendations ......................................................................................................... 93
6.3 Conclusion .................................................................................................................... 95
BIBLIOGRAPHY .................................................................................................................... 98
Appendix A: Descriptive Statistics .................................................................................... 102
Appendix B: Reliability Analysis ...................................................................................... 108
Appendix C: Correlation .................................................................................................... 113
Appendix D: Factor Analysis and Regression ................................................................... 117
Appendix E: MLQ Scoring Key and Employee Performance Scoring Key ...................... 131
Appendix F: Multifactor Leadership Questionnaire (MLQ) Leaders Questionnaire and
Interview questions ............................................................................................................ 132
Appendix G: Multifactor Leadership Questionnaire (MLQ) and Performance Rater
Questionnaire ..................................................................................................................... 135
Appendix H: Cover Letter ................................................................................................. 139
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CHAPTER1: INTRODUCTION
1. Introduction
The concept and definition of leadership may differ from one individual, or
situation, to another. The term “leadership” has been used in various aspects of human
endeavour such as politics, businesses, academics and social work to name a few.
Early views about leadership show it as personal ability and capability of the
individual. Messick & Kramer (2004 cited in Obiwuru, Okwu, Apa & Nwankwere,
2011) argued that the degree to which the individual exhibits leadership traits depends
not only on his characteristics and personal trait, but also on the characteristics of the
situation and environment in which he/she finds himself. Since human beings could
become members of an organization to achieve certain personal objectives, the
amount that they are active members depends on the extent to which they are
convinced that their membership will enable them to achieve their pre-determined
objectives. Therefore, an individual is likely to support an organization if he believes
that his personal objectives and goals could be met; if not, the person’s interest may
decline. Leadership style in an organization plays a significant role in enhancing or
hindering the interests and commitments of the individuals in the organization. Thus,
Glantz (2002) emphasizes the need for a manager to find his leadership style.
Leadership styles often will have significant effects not only on small
organizations but also on many large corporations. These styles affect everyone from
senior management to temporary employees. They build the corporate culture which
consequently has significant influences on both employee and the organizational
performance. In fact, Arab leadership styles play a significant role in shaping the
organizational culture, based on the fact that most businesses are family oriented in
nature.
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Leadership styles are very dynamic and each has its own impact on individual
performance and, consequently, on organizational performance. Accordingly,
employee performance has been shown to have a tremendous positive effect on
organisational performance (Collis & Montgomery, 1995). Although some of the top
and middle management believe that they run the show, the principal influence on the
organisation’s performance is the quality of the workforce at all levels of the
organisation, which only a great leader can understand and influence. Leaders must
provide opportunities and tools to these individuals to perform, otherwise their
performance may decline and subsequently the performance of the organization
would decline. Therefore, one of the many reasons why some organizations have
failed lies in the way in which their leaders managed their people and the inadequate
or lack of understanding that such leaders had of the value of their taskforce.
Organizations that have effective leadership and management rooted within their
cultural values; have the ability to not only retain their calibre, but also maintain high
performance.
Middle Eastern countries are small cultural based communities. They
implement business practices that maintain strong cultural ties and in some cases a
sense of predominant family oriented functional work environments. The manner in
which these cultures may differ from one another depends on the leadership style and
values, which drives the performance of both employees and organizations. Research
conducted by Hawkamah institution has shown that family owned firms represent
more than 60% of the total equity market value of the top 20 firms in the GCC. In
fact, the survey also noted that 50 to 66.7% of board seats are held by members of the
same family. This emphasizes having the same shared values and visions, which is
usually cascaded down to employees. A small portion of these family oriented
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businesses is connected to the royal families of these countries. Although there is
some research that has studied the direct relationship between leadership style,
organizational culture and commitment, the majority of leadership-related studies
have indicated that leadership style has a great influence on commitment (Lok &
Crawford, 1999). It is the role of these leaders to create an environment that inspires
employee commitment and increases their motivation to perform.
Stogdill (1948) believed that situational factors played a strong role on
leadership traits. If we believe that trait matters, then history is the framework for
Arab leadership, for example a leadership that has been influenced by the rulers of the
country. Under the vision and guidance of H.H. Sheikh Mohammed Bin Rashid Al
Maktoum, Vice President, Prime Minister and Ruler of Dubai, the UAE has
implemented many programs on a country level, which have been subsequently
enforced on an organizational level. These programs are designed using various well
known organizations under the patronage of H.H., for instance, the UAE Government
Leaders Program, Emaar Properties Leadership program, Emirates Executive
program, INSEAD Executive program and many more. The instigation of these
programs lies solely in the vision and desire to build more leaders in the region who
will pave the way for generations to come. Apart from these programs, there are
various initiatives that support young leaders to discover their leadership skills and
work on them, such as Dubai SME for Small and Medium Enterprises (the emphasis
of which is to build leaders in the Arab region). What we are looking for is the type of
Arab leadership styles that exists in the region, and how these styles affect employee
performance and influence their organization’s performance.
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1.1. Research Questions
1. Does Arab transformational leadership style associate with employee
performance?
2. Does Arab transactional leadership style associate with employee
performance?
3. Does Arab leadership style (transformational and transactional) build
organisational culture and shape the relationship between the
organizational and employee performance?
1.2. Hypothesis
Furthermore, the following hypotheses were developed:
H1. There is a positive relationship between Arab leaders’ transformational leadership
and employee performance.
H2. There is a negative relationship between Arab leaders’ transactional leadership
and employee performance.
H3. Arab leadership styles (transformational and transactional) impact the
performance of the employee’s and thus organizational performance.
1.3. Significance of the Study
The study is mainly about Arab leadership style and its impact on organization
and employee performance. The study aligns with the concept of leadership as
explained by Taffinder (2006) and thus, considers leadership within the context of a
holding company that has various entities that are part of different sectors. It allows us
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to examine how the leadership of Arab leaders of different entities under one umbrella
“holding company” contributes towards achieving high employee and organization
performance. A holding type of organization is often one with a medium number of
employees and can have medium size to low capital strength under each entity.
Although these entities falls under one management leadership style and main
strategy, they all act as separate organizations, with completely different lines of
business and different leadership styles.
1.4. Evaluation of the Study
From this consideration, this study is intended to evaluate the effect of Arab
leadership style on the performance of these small-to-medium size
entities/organizations under the holding company, that contribute to empirical studies
on leadership style and business performance. Further, it will propose quantitative-
based recommendations for Arab leaders and leadership programmes to re-position
the small organizations at integral part of the engine of economic growth and
development in UAE.
1.5. Structure of the Dissertation
The study is divided into five sections.
1. Section one is the introduction, which gives the reader a brief description on
the content of the research, with brief background, research question,
hypothesis, significant of the study and the structure.
2. Section two is a review of the related literature, that consist of three sections,
leadership theories and style, individual and organizational performance
theories and finally the link between leadership style and both individual and
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organizational performance that are somewhat derived from the organization
culture.
3. Section three discusses the methodology employed in carrying out the study,
the different methods of data analysis used, such as, interviews, questionnaire
etc., the reasons and benefits of using the particular methods and their
limitations on the research.
4. Section four is data presentation, analysis, and results of the data collection
from previously mentioned employed methodology.
5. Section five is the finding and discussion of the presented data and analysis,
explaining how well it represents our hypothesis in relation to our literature
review.
6. Section five concludes the study and provides necessary recommendations for
further studies in this field and for Arab leader.
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CHAPTER 2: LITERATURE REVIEW
2. Introduction
The literature review presented in this paper is examined in three stages. First,
studies of the different leadership theories and style are discussed. Second, research
into performance of individuals and the organizational performance and its link with
leadership styles, and finally, the analysis of leadership style and how it shapes
organizational culture and the links between organization and employee performance.
2.1. Leadership Theories & Style
Leadership has been identified as the main force that creates higher impact in
the field of organizational behaviour. Their ability to understand and drive employee
performance and lead to better organizational performance is remarkable. Their
impact reflects as either creative or productive performance. As stated by Bukingham
“Discover what is unique about each person and capitalize on it” (cited in Araoz,
2007). Leadership is one with the most dynamic effects during individual and
organizational interaction. As defined by Yukl in Larssona & Vinberg (Leadership
behaviour in successful organisations: Universal or situation-dependent?, 2010, p.
330) leadership is “the process of influencing others to understand and agree about
what needs to be done and how to do it, and the process of facilitating individual and
collective efforts to accomplish shared goal”. Obiwuru et al. argues that the ability of
an individual to execute “collaborative effort” as he said it depends on his leadership
skills and competencies. “Lee & Chuang (2009) explain that an excellent leader not
only inspires subordinate potential to enhance efficiency but also meets their
requirements in the process of achieving organizational goals. Stogdill (1957) defined
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leadership as the individual behaviour to guide a group to achieve the common target
(for further discussion see: Obiwuru, Okwu, Apa & Nwankwere, 2011).
Among the various leadership theories in relation to employee and
organizational performance, perhaps the most prominent is the transformational-
transactional theory of leadership (Obiwuru, Okwu, Apa & Nwankwere, 2011). As
identified by Kirkman and Rosen (1999) in (Williams, Parker, & Turner, 2010) team
performance is an emergent factor with team empowerment that is developed through
factors such as leader behaviour, responsibility, and various other factors. More
specifically, as explain by Saowalux & Peng (2007) and Burns (1978) they build two
hypothesis two differentiate what they called “ordinary” from “extraordinary”
leadership; these are transactional and transformational leadership (Obiwuru, Okwu,
Apa & Nwankwere, 2011). Transactional (ordinary) leadership mainly believe in
straight forward exchange type relationship. In which followers’ need to comply with
the demands to achieve results in exchange of a particular reward. In contrast,
transformational leaders believe in building individuals and teams, in which the
leaders lead people in an effort to transform them as well as realign their goals with
the organizational goals. They raise followers’ awareness levels by highlighting the
importance of teamwork, collaboration, change, openness and self-development in
order to achieve better results. They build individuals self-motivation in a way that
forces them to focus on setting goals for self and the team so as to accomplish
outstanding performance for the sake of the larger mission and vision of the
organization (Obiwuru, Okwu, Apa & Nwankwere, 2011).
‘Such total engagement (emotional, intellectual and moral) encourages
followers to develop and perform beyond expectations (Burns, 1978;
Bass, 1985). Burns (1978) observes that transformational leadership
involves the process of influencing major changes in organizational
attitudes in order to achieve the organization’s objectives and
strategies. Bass (1985) observed that transactional leaders work within
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their organizational cultures following existing rules and procedures,
while transformational leaders change their cultures based on a new
vision and a revision of shared assumptions, values and norms. When
an organization must adapt to changes in technology, its leadership is a
critical factor in its successful change. Bass (1985) operationalized the
work of Burns (1978) by developing a model of transformational and
transactional leadership, referred to in more recent publications as the
full range leadership model (Bass & Avolio, 1997).’
(Obiwuru, Okwu, Apa & Nwankwere, 2011)
2.1.1. Transformational Leadership
In the various leadership styles suggested by scholars, it’s clear that there are
two groups of leaderships each of which differs based on the way they motivate
others. Transformational leadership style transforms the personal values and beliefs of
the leaders to stimulate and motivates subordinates to achieve more (Bass, 1985).
Burns (1978, cited in Chan, 2010, p. 60) identified transformational leadership as a
process where, one or more persons engage with others in such a way that leaders and
followers raise one another to higher levels of motivation and morality.
In transformational leadership style, the leaders are admired, respected and
trusted by the followers as they sense the trust and respect mutually in return by the
leader, therefore followers display high self-motivation and enthusiasm in their
performance (Bass, 1985; Katz & Kahn, 1978). Transformational leader pay attention
to individuals needs to stimulate their creative and innovative mind toward the larger
objective of the organization or team and their own higher needs. Leaders under this
style encourages followers to seek innovative and creative approaches to achieve their
objectives, which results into new ideas and addressing issues and finding improved
solutions (Bass et al. 1994; for further discussion see: Obiwuru, Okwu, Akpa, &
Nwankwere, 2011). They also empower their teams by promoting autonomy that
creates a sense of belonging in these employees and develops the desired motivation
to perform (Ceharbonn, Barlin & Kellowa, 2001). As a result, there is an increase in
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their level of performance, satisfaction, and commitment to the goals of their
organization (Podsakoff et al. 1996). Transformational leaders generally have a more
content workforce, since their employees have input into decision-making and can
feel the involvement level as well as the sense of belonging.
As proposed by Bass (1990) there are four main behaviours or attributes of
transformational leadership, these are idealized influence, inspirational motivation,
intellectual stimulation, and individual consideration.
‘Charismatic, or idealized influence or attributes, is characterized by
vision and a sense of mission, instilling pride in and among the group,
and gaining respect and trust (Humphreys & Einstein, 2003).
Charismatic behaviour also induces followers to go beyond self-
interest for the good of the group, providing reassurance that obstacles
will be overcome, and promoting confidence in the likelihood of
successful achievement and execution of influence (Conger &
Kanungo, 1998; Howell & Frost, 1989) and followers place an
inordinate amount of confidence and trust in charismatic leaders
(Howell & Avolio, 1992).’
(Obiwuru, Okwu, Apa & Nwankwere, 2011)
‘Drawing on Bandura (1986), Shamir et al. (1993) propose that charismatic
leaders’ expression of high expectations for follower performance and their ability to
persuade followers that they can meet those expectations motivate followers to
produce and sustain greater effort via the mediation of self-efficacy’ (Shea, 1999).
‘Inspirational motivation is usually a companion of charisma and is
concerned with a leader setting higher standards, thus becoming a sign
and focal point of reference. Bass (1985) points out followers look up
to their inspirational leader as one providing emotional appeal to
increase awareness and understanding of mutually desirable goals.
This is characterized by the communication of high expectations, using
symbols to focus efforts, and expressing important purpose in simple
ways. The leader always behaves by talking optimistically about the
future, articulating a compelling vision for the future and providing an
exciting image of organizational change (Bass & Avolio, 1994). The
motivation occurs by providing meaning and challenge to the
followers. Work, individual and team spirit are aroused and
enthusiasm and optimism is displayed. The leader encourages
followers to envision attractive future states, for the organization and
themselves (Bass et al. 1997).
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Intellectual stimulation provides followers with challenging
new ideas and encourages them to break away from the old ways of
thinking (Bass, 1985). The leader is characterized as one promoting
intelligence, rationality, logical thinking, and careful problem solving.
The attributes include seeking differing perspectives when solving
problems, suggesting new ways of examining how to complete
assignments and encouraging re-thinking of ideas that have not been
questioned in the past (Bass & Avolio, 1994). The leader encourages
the followers to be innovative and creative by questioning
assumptions, reframing problems, and approaching old situations in
new ways.
Finally, the fourth dimension of transformational leadership is
individual consideration, which is concerned with developing
followers by coaching and mentoring (Bass, 1985; Bass & Avolio,
1990). The leader pays close attention to the inter-individual
differences among the followers and acts as mentor to the follower. He
teaches and helps others develop their strengths, and listens attentively
to the concerns of others (Bass & Avolio, 1994). “Followers are
treated individually in order to raise their levels of maturity and to
enhance effective ways of addressing their goals and challenges”
(Bass, 1985).’
(Obiwuru, Okwu, Apa & Nwankwere, 2011)
Leaders under the transformational style, emphasizes that management must
offer guidance to the teams and departments while being open to accepting input from
individuals. They still reserve the right to make final decisions but always encourage
feedback, ideas, and suggestions from all levels of employees which makes them feel
connected to the organization. As stated in Vigoda-Gadot (2007) that Burns (1978)
suggests “that the outcome of transformational leadership is a relationship of mutual
stimulus that transforms the led into leaders and the leaders into moral agents.”
2.1.2. Transactional Leadership
As discussed earlier, transactional leadership involves an exchange system that
emphasises on follower compliance with leader request in order to be rewarded. The
leader ensures that individuals are performing the desired tasks to meet desired
organizational objectives (Boehnke et al. 2003). ‘The objective of the transactional
leader is to ensure that the path to goal attainment is clearly understood by the internal
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actors, to remove potential barriers within the system, and to motivate the actors to
achieve the predetermined goals’ (House & Aditya, 1997) cited in (Obiwuru, Okwu,
Akpa, & Nwankwere, 2011). Such type of leadership style results in a performance
that is consistent with size of the reward. Several researchers shown that this style of
leadership has significant positive correlation with employees’ performance,
commitment, and satisfactions in various different cultures.
‘Transactional leaders display both constructive and corrective
behaviours. Constructive behaviour entails contingent reward, and the
corrective dimension imbibes management-by-exception. Contingent
reward involves the clarification of the work required to obtain
rewards and the use of incentives and contingent reward to exert
influence. It considers follower expectations and offers recognition
when goals are achieved. The clarification of goals and objectives and
providing of recognition once goals are achieved should result in
individuals and groups achieving expected levels of performance
(Bass, 1985)’
(Obiwuru, Okwu, Akpa, & Nwankwere, 2011)
Contingent reward leaders would either reward or discipline their followers
based on their performance (Senior, 1997). Active management-by-exception refers to
the leader with set standards for compliance and are more result oriented; this type of
leadership may include punishment as well as rewards for meeting compliance with
those standards. As stated by Pradeep & Prabhu (2011) “The leader concentrates fully
on dealing with employees’ mistakes, complaints and failures.” This style of
leadership implies micromanagement were close monitoring of nonconformities,
mistakes, and errors are major tasks and accordingly corrective actions are to be taken
as and when necessary. This style clearly defines the division between leaders and
workers were leaders take all decisions on company operational and strategic plans
and provide less options or room for creativity, creating a gap between the employees’
and the organization’s goals. Transactional leadership style is basically were the
leader makes work more instrumental for followers with clear procedures and
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guidance to reach their own existing goals while concurrently contributing to the
goals of the organisations (Brand et al. 2000).
It was shown in a research study conducted by Pruijn & Boucher (1994) that
transformational leadership is an extension of transactional leadership (Bass, 1997).
The difference between these two styles is that followers of transformational
leadership exhibit performance which is beyond expectations, while transactional
leadership, at best, leads to expected performance (Bass & Avolio, 1994).
Transactional leaders can be more effective in markets that are continuously growing
and where there was little or no competition (Ristow,1998), which is certainly not the
case in today’s market, where we face high competition and clear lack of resources. In
fact, the current competitive business environment requires a new style of leadership
that ensures organization survival before it can perform (Bass, 1985; Brand et al.
2000).
2.2. Performance
Although the term performance is used extensively in all fields of
management, its actual meaning is rarely explicitly defined by authors even when the
main focus of the research is performance. It is often identified or associated with
effectiveness and efficiency (Neely, Gregory & Platts, 1995). Performance is a
relative concept defined in terms of some referent employing a complex set of time-
based measurements of generating future results (Corvellec, 1995). As a result the
majority of organisations have streamlined their organization/operations performance
under the concept of performance objectives. These performance objectives, define
clear organizational objectives that cascade to the departments and individuals. Also
and more specifically in the Arab region, organisations can perform well or poorly
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due to external forces, such as exchange rates, imposed taxation, cultural forces, etc,
which many organizations fail to consider, while setting their organizational
objectives/goals that eventually impact on individuals. To maintain and have accurate
performance objectives and results in such an environment, the organisation needs to
define clear SMART objectives to get the most out of its assets, especially the human
assets and reward them accordingly. Performance management is an on-going and
joint process between the employee and the leader of an organization who, “strives to
improve the employee’s individual performance and his contribution to the
organisation’s wider objectives” (Hellriegel et al. 2004, p. 249). Although,
organizational performance is a concern of each and every member of the
organization; stakeholders, shareholders, management, customers and employees, is a
collective believe and recognition that the notion is derived from the organisation’s
human resources department (Hellriegel, et al. 2004).
2.2.1 Individual Performance
As stated by Amos et al. (2004, p. 63) “the effective management of individual
performance is critical to the execution of strategy and the organization achieving its
strategic objectives”. Performance cannot be left indeterminate expecting individuals
to achieve, although some employees naturally desire performance for various
reasons. This desire needs to be designed and facilitate a systematic approach for it to
accomplish its goals (Amos et al. 2004). Individual performance and its management
has become a large issue in today’s business environment (Armstrong & Baron,
1998). Whetten & Cameron (1998) state that individual performance is the product of
ability multiplied by motivation. We can say that an individual’s performance is
influenced by factors such as ability to perform, motivation factors and the
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opportunities given, known as AMO or the performance equation, as shown in the
diagram below in Figure 1. The performance equation can also be used as a method of
succession planning for those individuals, who have the (ability) and desire to
perform and the “will do” attitude (motivation) to perform which accordingly provide
them with the necessary tools to perform (opportunity).
Figure 1- The AMO framework
Adapted from Boxall & Purcell (2008)
Cummings & Schwab (1973) also had similar views, where they described the
ability of the individual as a reflection of their capabilities that enables them to behave
in a certain way, and motivation as the effort or energy, which drives the behaviour
and determines how vigorously capabilities will be employed to perform certain tasks.
The balance of both factors is quite important to achieve desired results. This is also
supported by Vroom (1964) who indicates that factors that influence individual
performance within an organisation are the ability of the individual and the
willingness of the individual to exert effort (motivation).
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2.2.2. Organizational Performance
Performance when it comes to the organization can be defined as a set of time-
based specific and well measured objectives that generate future results (Corvellec,
1995). For more than a decade, organizations have experienced radical and dynamic
change factors. Every moment presents a diverse set of challenges and obstacles, for
instance, laws and regulations, economic factors, lack of competencies in the market
and, most important these obstacles are unpredictable. Many organizations believe
that their employees contribute to the organization’s performance. As a matter of fact,
employees play a pivotal role in organizational success (Collis & Montgomery, 1995).
Many research articles have shown that employee performance has a significant
positive effect on organizational performance. However, major pitfalls in an
organization occur when managers believe their organizations are constantly
operating at the highest level (Foot & Hook, 1999).
The complexity of managing organizations today requires managers to view
performance in several areas simultaneously. Therefore, a performance management
system is a very important set of tools to manage employees’ performance within any
organization. There are various tools that manage both individual and organization
performance, such as, the Balanced Scorecard by Kaplan & Norton (1996), and the
360 degree process of performance management that includes group assessments and
peer reviews, as well as written reports (Hellriegel, et al. 2004). In recent years,
performance management systems have become more important as the pressure to
improve organizational performance has increased on line managers (Holloway,
Francis & Hinton, 1999).
Thus, effective leadership enables greater participation of the entire
workforce, which influences both individual and organizational performance (Bass,
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1997; Mullins, 1999). A good leader understands the importance of employees in
achieving the broader goals of the organization. He/she understands that to have better
organizational performance, there must be a link between the individual’s goals and
the organization’s goals. Furthermore, it is generally accepted that the effectiveness of
any set of people is largely dependent on the quality of its leadership, they facilitate
the follower’s desires, which then results in effective performance (Fiedler & House,
1988; Maritz, 1995; Ristow, et al. 1999).
2.2.3 Leadership Style and Performance
‘Fry (2003) explains leadership as the use of a leading strategy to offer
inspiring motives and to enhance the staff’s potential for growth and
development. Several reasons indicate that there should be a
relationship between leadership style and organizational performance.
The first is that today’s intensive and dynamic markets feature
innovation-based competition, price/performance rivalry, decreasing
returns, and the creative destruction of existing competencies (Santora
et al. 1999; Venkataraman, 1997). Studies have suggested that
effective leadership behaviours can facilitate the improvement of
performance when organizations face these new challenges (McGrath
& MacMillan, 2000; Teece, Pisano & Shuen, 1997).’
(cited in: Obiwuru, Okwu, Apa & Nwankwere, 2011)
As suggested by Tannenbaum & Schmidt (Cited in: Kanji, 2008), leadership
active participation in the organization through its three different forces, as shown in
Figure 2: leadership management style, team or subordinate management style, and
the situation or environment they are currently dealing with, could ensure sustainable
vision that enables them to accomplish their desired performance (Kanji, 2008, p.
420).
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Figure 2: Management
Style and
Interrelated Forces.
(Adapted from
Kanji, 2008)
As shown above, the performance of an organization and an individual are
closely connected with the leader’s ability to bring work autonomy, ensure that
employees has the appropriate knowledge, experience and the right environment and
tools to perform. Organizational performance is nothing but the ability of a corporate
to achieve certain desired objectives, such as, higher profit, higher productivity, better
customer service, better financial results and/or survive a pre-determined phase using
a well-designed strategy (Koontz & Donnell, 1993). Setting up organizations’ goals
provides higher objectives and means for the individuals to aim to, which
consequently increases enterprise performance in terms of the level of profit, market
share, product quality and so forth dependent on the type of business. An enterprise’s
productivity and performance is substantially by all individuals’ performance and
work outcomes, measured in terms of profit, productivity or customer service.
Therefore, understanding the influence of leaders on overall organizational
performance is vital, as indicated by various researchers it’s a key force to creating
improvements in organizational performance. Based on Bandura (1986), Shamir et al.
(1993) propose that some leadership styles/behaviours are viewed as effective force to
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produce and sustain performance. Similar, though not identical views were drawn by
Obiwuru et al. (2011) that leadership is perceived as an effective source to improve
and sustain management development and organizational performance (Avolio, 1999;
Lado, Boyd & Wright, 1992; Rowe, 2001). Basically, the two leadership styles we
have discussed earlier, transactional and transformational demonstrate valuable
behaviours or characteristics that persuade followers to perform better. For instance,
the inspirational motivation type of transformational leaders provides meaning and
challenges to their follower’s work, which help lift the individual and team’s spirit
and builds the desired levels of commitment and performance. On the contrary,
transactional leadership with their less ambiguity and clear structures of goals and
associated rewards helps organizations to achieve their current objectives more
effectively (Zhu, Chew & Spengler, 2005). Although many scholars suggests that
transformational leadership can result in long term commitment, loyalty and job
satisfaction. Lok & Crawford (1999) suggest that transactional leadership style could
demonstrate more positive results to commitment and job satisfaction amogest Hong
Kong managers.
Although, various evaluations have been conducted with respect to leadership
development programs (Van De Valk & Constas, 2011), there is no one formula for
effective leadership to drive organizational performance, yet, one must agree that
there are certain aspects which must be considered to reach the required level of
effectiveness of leadership. As drawn from the different articles, these can be
summarized in: creating a shared vision, communicating the vision, establishing the
sense of team work and emphasizing its importance, planning and delegating,
recognizing and rewarding, articulating new/successful behaviors and finally ensuring
leadership development and succession (Kotter, 2007). These also demonstrate
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various transactional and transformational leaders behviours and styles. At this point
we can assume that leadership certainly contributes in the success or failure of an
organization. As is shown in Figure 1 and 2, there are various aspects that shape an
organization’s performance, and a key role is played by leaders. Other aspects such as
policies and procedure, computers, systems, work environment, etc are all means that
can assist individuals to perform effectively. Leaders are believed to form and shape a
shared model that creates either a clear path in the case of transactional leadership or
clear vision, in the case of transformational leadership both of which are often seen as
important elements for employees to perform.
There is indeed a significant relationship between employees’ and
management’s leadership styles which one must adapt and focus on. So far we have
seen that transactional leadership provides and fulfils both the organization’s and
employees’ needs to some extent, whereas transformational leadership focuses on
understanding and developing common values and visions that help followers be part
of the organizational goals (Ojokuku, Odetayo, & Sajuyigbe, 2013). However,
according to House & Aditya (1997), while focusing on superior-subordinate
relationships one must not disregard other important intangible factors such as,
culture, skills and competences, motivation and most important, personality and traits.
People, structure, technology and environment are the four major forces that affect the
nature of the present workforce (Newstrom, 2007). Other scholars have also
suggested that there are gaps in the relationship between leadership and organizational
performance. Some suggest these gaps are the mediators in the relationship between
the two.
The above review of the literature, indicates that there is a fundamental
correlation between leadership and organizational performance. The relationship may
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vary from a positive to negative correlation between the two in various studies. It is
certainly hard to draw one clear model of the relationships in leadership’s impact on
performance, especially since we highlighted the gap in knowledge that remains over
the role of numerous mediators . Therefore, the intention of this dissertation is to re-
examine the proposed relationship between leadership and performance adding value
to the existing literature in this area.
2.3. Organizational culture and performance
Goffee (1997) in (McKenna, 2006) defined culture as “historically created
guides for living and collective mental programming, and these are derived from deep
assumptions that are not directly accessible but may be reflected in the values,
attitudes, and behaviour of individuals and groups”. Similarly, as stated in Deshpandé,
Farley & Webs (1993), Deshpandé & Webster (1989) reviewed a number of studies in
the field of organizational behaviour, sociology, and anthropology; defined
organizational culture as "the pattern of shared values and beliefs that help individuals
understand organizational functioning and thus provide them with the norms for
behavior in the organization" (p. 4). Another definition of organizational culture by
Moorhead and Griffin (2004) cited in (McKenna, 2006) is “set of values, often taken
for granted, that helps people in an organization understand which actions are
considered acceptable and which are considered unacceptable”. As defined by
Martine et al. (1988) cited in (Pinnington, 2012) and for the purpose of this research,
culture is “A collective (for example society, organization, group or sub-group)
interpreted for its sense of social integration, differentiation, and fragmentation”.
Cultural values as agreed by many researchers are collective efforts driven by the
leaders of the organization, which helps with aligning goals and ensures performance
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and commitment. From the above various definitions, we can conclude that
organizational culture is a collective values and patterns developed by members of a
group, usually top management, to achieve desired shared goal. As indicated by
several researches the topic of organizational culture can be clearly noticed during the
nineteenth and twentieth centuries. The attention given by scholars and researchers to
the topic of organizational culture is impressive, which only indicates the importance
of the notion. However, the massive number of definitions and various descriptions of
the topic have only made it more difficult and a debatable for researchers in this field.
The major reason recognised for the debate on this subject is driven by the theory of
organizational culture leading to superior organizational performance. Whereas, many
researchers argues that organization’s performance is dependent on the commitment
and understanding of the organization’s leaders and subordinates (See: Ogbonna &
Harris, 2000).
It is also important to note that although there has been various key
components indicated by researchers for the formation of the concept. Majority had
top management commitment as a crucial and common factor. While the evidence of
the relationship between leadership and performance is largely subjective,
considerably more research has examined the organizational culture–performance
relationship. Many studies have proven that an ethnographic study through a
qualitative approach is the best to find a relationship between leadership style and
culture, being such a complex context (Ofori & Toor, 2009). As stated in (Chan,
2010) “To achieve success, leaders must inspire others to work together to deliver
high-quality results. They will always have to display certain traits, such as ensuring
customer satisfaction, communicating a vision, and focusing on results (Goldsmith
2003)”.
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One of the main reasons for the claim that organizational culture is linked to
performance is perceived from the role that culture plays in generating competitive
advantage through implicit part of the employees’ values and beliefs. They suggest
that organizational culture may create competitive advantage by drawing clear path
that foster common understanding between employees that enables the individuals to
interact and take action to some extend within the supposed limitations. As stated by
McKenna (2006) “The interaction of people and culture has reinforcing qualities,
frequently resulting in committed employees”. The fact that nowadays organizations
consist of individuals with different cultural and social experiences, urge leaders to
look into the importance of understanding these differences and unifying their
organization’s culture (Ashkanasy, Hartel, & Daus, 2002). Similarly, it is argued that
a strong organizational culture has significant influence on the member’s behaviour,
simply because the core values of the culture are widely understood and embraced
(Ogbonna, 1993). On the contrary, the weaker the culture the more it is likely for
conflicts to occur between the members, due to lack of direction. As stated by
Suliman & Abdulla (2005) strong cultures would help “understanding organizational
conflict and the role it plays in influencing employee behaviour and work outcomes”.
Furthermore, researchers in this field are explicit in their claims about a
culture-performance association. Some argue that successful organizations are well-
known for their ability to promote strong cultural values which are consistent with
their overall organizational strategies (example.g. Deal & Kennedy, 1982; Ouchi,
1981; Pascale & Athos, 1981; Peters & Waterman, 1982). Some suggest that the
interaction between people and culture has a positive impact on employee
performance and commitment, however this view has been subjective and been
criticised by many.
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In the early 1990s, some researchers proposed that there is a correlation
between certain organizational cultural characteristics and performance (Gordon &
DiTomaso, 1992; and Denison, 1990). In particular, they noted that it is essential for
culture to be able to adapt to changes in environmental conditions for it to have a
significant correlation. For instance, several scholars who investigated these two
subjects reported that many mergers fail due to an insufficient understanding of the
two diverse cultures that result in organizational culture conflicts. The impression is
that, the leaders’ insufficient understanding of their own shared values and visions is
what is attributed to the failure of a merger (see: McKenna, 2006, p. 528). In fact
similar concern arises for many large organizations, having a dominant and multiple
sub-cultures, these are usually based on the structure of the organization and how
connected or separate are the various levels. The dominant culture would be the
widely shared culture among employees, whereas the sub-culture would be noticed
between groups or smaller departments. If the dominant culture is weak or not well-
understood or manifested, conflicts can arise between the two cultures. Furthermore,
researchers argue that it is not about how strong or how widely spread is the culture,
rather how exceptional is the current culture. Nevertheless, this relationship between
culture and performance remains weak (Hop•et al. 1992; Lewis, 1994; Lim, 1995;
Ray, 1986; Willmott, 1993).
The above literature provides an indication that the concept of organizational
culture is broad and emergent. Many academics, practitioners and leaders find the
concept interesting and claim that it requires further attention, mainly because they
seem to agree on the fact that there is a link between organizational culture and
performance (See Source: Ogbonna & Harris, 2000). While, the correlation between
organizational culture and organizational performance is still arguable by many
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academics, adequate evidence exists to suggest that culture can be directly or
indirectly associated with performance.
2.3.1. Leadership, Organizational Culture & Performance
In the previous sections of this literature review, we have tackled the
following topics; the relationship of leadership with individuals’ performance,
organizations’ performance and between organization culture and its relationship with
performance, in which we highlighted number of reports indicating that the
performance of an organization is highly dependent on the alignment of employee
values with the incorporated values of an organization that enables them to think Big
Picture. This suggests that these values are built and emphasised through a strong
organization culture that is usually formed by the leaders. The following is a review
of the literature on this concept.
Number of researches on the relationship of organization culture and
leadership style has been undertaken in the past; however, very few considered the
influence of it on performance. As stated in (Awan & Mahmood, 2010) “Maehr
(1990) has studied relationship between organizational culture and motivation and
concluded that culture shapes up the “psychological environment” in the
organizations”. As concluded by Lok and Crawford (1999) there are various variables
that could influence commitment and performance, including, age, pre- employment
expectations, perceived job characteristics, and the consideration dimension of
leadership style. One way of uncovering this vague relationship between culture and
leadership is to examine how culture has been conceptualized in organizational
theory.
‘Smircich (1983) identifies two approaches to the study of the cultural
phenomenon in organizations: one culture as an organizational variable, and
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second, culture seen as something which can be manipulated. Thus the nature,
direction, and impact of such manipulation are dependent on the skills and
abilities of the leader. The majority of the literature which extols the virtues of
transformational leadership demonstrates widespread support for this view (for
example, Nicholls, 1988; Quick, 1992; Simms, 1997). In contrast, if culture is
seen as an integral part of the organization, then the thinking, feeling, and
responses of leaders are moulded by the culture’ (Bass & Avolio, 1993;
Schein, 1992; See source: Ogbonna & Harris, 2000).
As argued by Larssona & Vinberg (2010) it is leaders’ leadership behaviour
with their subordinates that affects the outcome of employee work effectiveness,
productivity, quality, health and job satisfaction. It is that healthy relationship that
links the style/behaviour with individuals’ work performance. The way employees are
treated, respected and guided by their leaders builds the bridge to an effectiveness and
loyalty based culture.
Figure 3: A model of Organizational Culture Types
Adapted from: (Cameron & Freeman, 1991) and (Quinn, 1988) in (Deshpandé, Farley, &
Webs, 1993).
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‘Schein (1992) observes that organizational culture and leadership are
intertwined. He illustrates this inter-connection by looking at the
relationship between leadership and culture in the context of the
organizational life cycle. Thus, during the process of organizational
formation, the founder of a company creates an organization which
reflects their values and beliefs. In this sense, the founder creates and
shapes the cultural traits of their organization. However, as the
organization develops and time passes, the created culture of the
organization exerts an influence on the leader and shapes the actions
and style of the leader. Through this dynamic on-going process, the
leader creates and is in turn shaped by the organizational culture. “In
summarizing the consensus of opinion on the links between
organizational culture and leadership, Bass & Avolio (1993) mirror the
argument of Schein (1992) by suggesting that the relationship between
the two concepts represents an on-going interplay in which the leader
shapes the culture and is in turn shaped by the resulting culture’
(cited in Ogbonna & Harris, 2000).
If you look at Figure 3, it illustrates four classifications of organizational
culture; each of which shows variance in the degree of performance and leadership
style. There are other factors such as market competitive advantage and market
superiority, which is likely to result in better business performance than both
hierarchical and clan cultures (Deshpandé, Farley, & Webs, 1993). It is clear that
business performance can vary based on organization culture, which is as we stated
earlier, is linked with leadership style.
While examining the impact of the various leadership styles on culture, Bass
(1985) notes that transactional leaders are more inclined to operate within the
boundaries of the existing cultures, transformational leaders tend to function towards
a more dynamic vision. Although some leaders may believe in the strict enforcement
of the existing culture, many researchers believe that leaders must be open to explore
and examine new values so that they can establish a culture that adapts to the diversity
of today’s workforce. Likewise, its argues that leaders must be able to manage and
value diversity by building the required skills that enable them to change or modify
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some aspects of their culture in order to move the organization on towards better
performance.
There has been a substantial amount of research on the link between
leadership and performance as well as leadership and organizational culture, while the
link between the three concepts; leadership, culture and performance has lacked
significant attention. Hennessey suggest that leaders who demonstrate strong support
and commitment towards organizational culture, promote work effectiveness and
efficiency (See source: Ogbonna & Harris, 2000). Ogbonna & Harris examined the
concept of leadership style, organizational culture and performance in UK companies,
in which the results clearly demonstrated the associations between leadership styles
and organizational performance with organizational culture being the mediating
factor.
The above literature review sheds some light on each of the components of
this study in particular the relationship between, leadership and performance and
some light on the relationship between leadership and culture. As discussed earlier,
the three subjects have been thoroughly examined individually and in different kinds
of association, however, not so much the leadership, culture and performance linked
together. This is also suggested by Ogbonna & Harris were he states, that many
writers suggest that there is a link between the following:
‘(1) The style of a leader affects performance;
(2) Certain types of culture are linked to superior performance, and
(3) Culture and leadership are related, however, the precise nature and form of
interaction between these three concepts is not fully understood.’
(cited in Ogbonna & Harris, 2000)
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Figure 4: The links between leadership style, organizational culture and organizational
performance
Adapted from (Ogbonna & Harris, 2000)
It is suggested that objectives supports the management perform their duties
and leadership roles in the most effective and efficient way as argued by (London,
2001). We must remember that organizations comprises of people, who are diverse in
every mean, language, culture, education, knowledge, talent, background and
perspective of both life and jobs. These diverse workforces could easily attract
conflicts in the work environment. Organization mission and objectives sets basis for
the core desired goals, by establishing clear common grounds for individuals and
reducing these variances of diverse workforces. These objectives allow the
management to form a harmonized work environment and team that can perform
within the organization.
Dubrin (2007), states that there are different classes of needs, and prioritizing
those needs helps building a harmonised organization. Although, these needs may
include physical, social and egoistic, job satisfaction is often associated with human
need and condition. As leadership has always been linked to management as it
involves directing, controlling to an extent the nature, degree, extent and staging of
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activities and changes occurring within the organization. Management in business as
defined in Wikipedia is “to coordinate the efforts of people to accomplish goals and
objectives using available resources efficiently and effectively. Management
comprises planning, organizing, staffing, leading or directing, and controlling an
organization or initiative to accomplish a goal” (Wikipedia, 2014). It is imperative
that the leadership of an organization should be given adequate attention, if the
organization intends to achieve its objectives. The practice of leadership as it were,
involves taking charge and streamlining the activities of organization members to
ensure that the desired results are achieved. If you look at Figure 4, what Ogbonna &
Harris (2000) are showing is that there is a clear link between leadership style and
organizational performance if we establish an appropriate culture that supports and
fits the main organizational objective and goal. The relationship between leadership
and performance can also be found via the various factors of sharing knowledge,
values, skills, and transparency on work results, as these factors develop the
motivation and environmental psychological status of the individual that increases the
performance. As stated by Taggar, Hackew & Saha (1999, p. 900) “Leadership has
been linked to both individual performance within a team and to team performance
(Borman, 1990; Cohen, Chang, & Ledford, 1997; Kenny & Zaccaro, 1983)”.
Although the above literature does help drawing some conclusion on some of the
relationships, further studies are required in this field to identify the relationship
between organizational culture, leadership style, and performance.
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CHAPTER 3: METHODOLOGY AND DIAGRAMIC MODEL OF THE
HYPOTHESIS
3. Introduction
This research follows a survey design and analysis that is based on primary
data generated through a structured questionnaire administered to a sample of
respondents. The survey instrument used in data generation is the Multifactor
Leadership Questionnaire (MLQ) developed by Bass (1985) in his study: ‘Leadership
and Performance beyond Expectations’. This is the most widely used instrument for
measuring leadership styles and outcomes or effects. It comes in several different
versions. The version used in this study is the popular MLQ (Leader and Rater
version) developed by Bass & Avolio. The independent variables are the
transformational and transactional leadership styles, while the dependent variables are
performance measures for work quantity, work enthusiasm, work skills, readiness and
innovation, where they will measure the different Arab leadership styles and the
impact on employee performance in the selected small scale organizations.
The study was conducted using both quantitative and qualitative approaches.
The survey was developed based on previous studies (Bass & Avolio, 2004; Glaser,
Zamanou, & Hacker, 1987; Herscovitch & Meyer, 2002; Schrodt, 2002). This survey
was divided into three sections, the first section was the respective “Arab leaders’”
perception of their leadership style as well as the researcher’s perception, the second
section was on the employee perception of their leaders’ leadership style, and finally,
the third section was on the key factors that indicates employee performance, which
were work quantity, work enthusiasm, work skills, readiness and innovation. The
independent and dependent variables will assist in determining the relationship
between a) Arab transformational and transactional leadership styles and linking them
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to b) employee performance and c) accordingly leading to organisational
performance.
Below is the diagrammatic model (Diagram 1) of the research question that
was adapted from Kanji’s model of management style and the interrelated forces that
drive employees’ performance. It simply illustrates how leadership style shapes
organization culture and work environment, via the policies and procedures which
mediate the relationship between employee and leaders and brings in the performance
of both employee and organization.
Model 1- Diagrammatic Model of Research Questions
Adapted from (Kanji, 2008)
The next two Diagrams, adapted from Boxall & Purcell’s AMO model,
Diagram 2-3, illustrates the researcher’s proposition of the relationship between the
independent and dependent variables, explaining how the hypotheses were tested. As
shown, the independent and dependant variables will assist in determining whether a)
Arab leaders transformational leadership styles and its effect on employee
Arab Leadership
Style
Transformational
/ Transactional
Organizational
Performance
Employee
Performance
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performance, b) Arab leaders transactional leadership styles and its effect on
employee performance and c) accordingly leading to Arab leaders’ leadership style
shaping employees and organisational performance. Whereby the independent
variables such as the transformational leadership builds the individuals’ abilities/skills
to work and brings in the motivation and enthusiasm to innovate by providing the
necessary guidance and opportunity to help individuals perform (organization Model
2). Similarly Transactional leadership, would have a negative impact onindividual
performance, due to lack of guidance, support and motivations from the leaders,
which might sometime increase work quantity, but would lack the quality type of
work or even the enthusiasm and positive work environment within the organization
Model 3.
Model 2- Diagrammatic Model of Proposition 1
Adapted from Boxall & Purcell (2008)
Model 3- Diagrammatic Model of Proposition 2
Adapted from Boxall & Purcell (2008)
HRM: employment
policies and Practices
Leadership Style- TF
Individual:
Ability (work skill)
Motivation (readiness to innovate, enthusiasm)
Opportunity to Perform
Individual Performance
Outcomes (innovation,
quality/quantity work, etc)
HRM: employment
policies and Practices
Leadership Style - TS
Individual:
Ability (lack of work skill)
Motivation (lack of innovation, enthusiasm)
Low Opportunity to Perform
Individual Performance
Outcomes (quantity work, less quality and innovation)
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Drawn from the above Proposition are our hypothesises, as shown in the
diagram below each independent variable associate with the dependant variables of
employees’ performance in either positive or negative way. For instance, Hypothesis
one indicates that Arab leaders transformational leadership style has a positive impact
on employee performance, whereas transactional leadership style of Arab leaders has
a negative impact on employees’ overall performance. Accordingly, Arab leaders’
leadership style has an impact positive or negative on the performance of employees
within an organization.
Model 4- Diagrammatic Model of Hypothesis
3.1. Research Methods
This research study employed both qualitative and quantitative methods. Both
of these research methods have their own advantages and made an important
contribution to the research as data from both methods was needed. While qualitative
methods provided insights into the underlying factors responsible for certain
behaviour or characteristics (Sinkovics, Penz & Ghauri 2004) for which interviews
methods were held, quantitative methods helps to provide exact and specific findings
which can be statistically analysed to make specific interpretations. And for this
method, a questionnaire survey was designed and distributed.
Transformational
Employee
Performance
Transactional
Leadership
Style
H3
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3.2. Qualitative Data
The qualitative data was collected through expert interviews that provided
insights into why the respondents identified themselves or wanted to identify
themselves the way they did during the MLQ for leaders rating task.
There are many reasons to use this method. In qualitative research the number
of measurement risks and concerns are on the higher side of difficulty to validate as
compared to quantitative methods and a major reason that justifies a qualitative
approach is the involvement of the researchers with the respondents and the research
process as “qualitative researchers often become immersed in the life of respondents”
(Creswell,1998). In most of the qualitative research implemented a lot of ethical
concerns arise as the data depends on personal opinions and feelings that are gathered
by the researcher. Also qualitative researchers, who design their studies and use this
method, tend to use an interpretive paradigm, which uses trustworthiness as opposed
to the conventional, positivistic criteria of internal and external validity, reliability,
and objectivity (Denzin & Lincoln, 1994; Lincoln & Guba, 1985; Padgett, 1998).
Denzin & Lincoln also suggested that these four factors can be considered to link
trustworthiness of findings from qualitative research: credibility, transferability,
dependability, and conformability. This research had a lot of emphasis on quality
rather than quantity, as the objective was not to increase numbers but to become
“saturated” with information on the topic (Padgett, 1998, p. 52). It can be concluded
that when doing qualitative research such as interviews, the results are not found in
the form of numbers or correlations but the data is built out of a large text-based data
which is collected by the researcher.
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3.2.1. Expert Interview Schedule
The expert interview schedule was especially designed for this research based
on the review of the existing literature, while the questionnaire items focused on
eliciting responses regarding the two main variables, examining the impact of
leadership style on the employees’ performance leading to Organizational
performance. The interview comprised of ten questions which were focused on the
topic. The interviews were held mostly via e-mail as both telephone calls and face-to-
face interviews could not be held as the majority of the people were travelling or had
prior appointments. Interviews take a longer time as the answers need to be elaborated
in detail and around the point. I had twenty four questions in the initial design but
then I had to reduce it to ten questions that were very specific to the topic (Appendix
E).
3.3. Quantitative Data
For the purpose of measuring leadership styles of transformational and
transactional leadership, the Multifactor Leadership Questionnaire (MLQ) (Bass &
Avolio) was used. The MLQ survey research method has undergone various revisions
and over time managed to set clear behavioural based items that achieve excellent
validity and prediction of organizational performance. The MLQ concept has become
the benchmark measure of transformational and transactional leadership. It provides a
contrast between how the leaders perceive themselves versus how others perceive
them. In this research the perceptions of the researcher and employees forms critical
feedback to the leader and a measure based on which the researcher would provide a
basis for growth and change. The quantitative data, collected through the
administration of questionnaires enabled the provision of exact findings, and helped
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the researcher to understand the degree of differences in perception caused by the
independent variables under study. The results obtained through both quantitative and
qualitative techniques were corroborated with each other and the final analysis based
on findings was produced. As stated by Thomas (1997), this type of data is mainly
numerical and it is very time consuming as data needs to be calculated statistically
and then interpreted using software that will be able to break the data into tables and
then be able to graphically represent that data. This is important for the researcher to
do so that the readers are able to understand this numerical data and is the best form
of data analysis for MLQ.
3.3.1. Questionnaire Design
On one hand, the researcher had the questionnaire for the leaders’ self-rating
that was made up to twenty four questions on top of the interview questions that was
mentioned earlier. On the other hand, there was the employee questionnaire that
contained up to forty one questions. The questionnaire was able to provide
quantitative results that are easily analysed and interpreted. The reason for choosing
questionnaires was the ease of designing it with an average of twenty four multiple
choice questions and also for the reason that it would not occupy a lot of the
participant’s time to complete and return it. The fact that it is filled anonymously
makes the data more reliable to work with increasing confidence that the data are not
biased.
Therefore, questions in the questionnaire are those relating to Arab leadership
style or behaviour and performance as measured by transformational and transactional
behaviours and work quantity, work enthusiasm, work skills and readiness and
innovation. These variables are a combination of Bass (1990) and House et al (1997)
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as well as Suliman’s (2001) proposals. This study operationalizes these variables to
evaluate the effect of Arab leadership style or behaviour on the performance of small
scale organizations of one holding company. In the MLQ, each independent variable
is given equal weight. Each research statement has five potential responses, ranging
from “Not at all” to “Frequently if not always” and is scaled from 0 to 4 for the
leadership style and for the performance factors the ranging is from “strongly
disagree” to “strongly agree” and is scaled from 0 to 4.
Copies of the questionnaire were distributed to the respondents with
instructions on how to fill them out. Altogether, four entities participated under the
survey, requesting a minimum of 50 responses of each and all were returned filled out
completely, giving a return rate of 100%. The reason for the high return rate in some
entities was that the researcher personally visited the entities and explained the
requirement, assuring the participants that the responses will remain anonymous and
was for the purpose of the researcher’s study only. Also, the highly recognized
support from top management was another factor for the high response rate.
Although, due to the fact that the research was conducted in June, the responses
gathered in the first round was not sufficient. So we needed to request more responses
via emailing the human resources department, which was very supportive.
3.3.2. Requirements of Questionnaire
The study required a questionnaire especially designed to incorporate the
variables this study was desired to address. The questionnaire designed for this
research was a combination of two different methods used in previous studies
conducted by various researchers. As the concept of the study was explored by many
other researchers in the past, it gave the researcher confidence in the approach.
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Although, the specified variables for this research might have not been used in
relation to each other, the purpose of this research was not to find a new technique as
much as to address the concept of the research topic.
Apart from the questionnaire, the respondents’ availability will be an added
issue to deal with. Cross cultural studies conducted earlier have not been easy given
the nature of the research and the vast number of issues and cultural differences
involved (Tan, McCullough & Teoh 1987). In this study, the requirement of
respondent time will need to be paid special attention to.
After the questionnaire has been administered to the respondents, the data
obtained was examined statistically and the interview responses were also content
analysed. The results were presented in the form of graphs by using SPSS and MS-
Excel and interpreted along with presenting the limitations of the results and
suggestions for future research.
3.3.3. Data Collection
The data was collected through the standardized questionnaire instrument that
was composed of two parts. The first part measures the demographics which include
age, gender, time spent in the current position and total tenure. The second part
measures both the independent and dependent variables which include organization
performance, which is hypothesized to be influenced by leadership styles and its
impact on employee performance. The researcher examined the independent
variables, which is leadership style, using two methods (qualitative and quantitative).
Using three categories to examine, first, the researcher personally interviewed the
selected leaders for the research. Second, the researcher used Bass & Avolio MLQ
Leaders Questionnaire version for leaders to self-rate their leadership style and the
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MLQ questionnaire rater’s version, was used for requesting employees to rate their
leaders. So in addition to the interviews, leadership styles (transactional and
transformational) were also measured by a survey developed by Bass & Avolio; that
was designed to describe leadership style as perceived by the leader and by their
employees. The researcher along with the HR practitioner’s recommendations
indicated the person (leader) that needed to be rated and those who were required to
complete the “leader rating” or “employees rating” version of the survey. Finally,
with regard to measuring the employee’s performance the researcher used question
items designed by Suliman (2001) and attached it as section two under the employees’
rating questionnaires.
3.4. Process of the Sample
Different people whom the researcher knew were contacted via phone or via
emails in UAE to distribute the questionnaire. Once the questionnaires were approved
by the entity’s HR’s representative, the researcher visited the entities personally and
explained the purpose of the questionnaire. Around 400 people were contacted in two
months’ time and out of the 400 only 250 responded. Some of the questionnaires
around 30, were not completed, therefore, they had to be removed.
The questionnaires and the interviews were sent via e-mail in June and early
July and the respondents were requested to answer in one week’s time due to the
submission deadline for this thesis which was the second week of November. The
questionnaire and the interviews were sent to the human resources department, who
organised the session for the researcher. Later the researcher met with people of all
nationalities under one group/holding company, and explained what was required to
get the surveys completed. This approach was better as it gave the employees
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confidence that their responses were not tracked and not intended for any official use
by the employer. The fact that June and July months are known to be used for summer
holidays, most of the people were on leave and there was a delay in getting the
number of survey returns required for the research. Hence, a few questionnaires were
sent via email later in October, the questionnaire sent via e-mail was accompanied
with a covering letter so the respondents were aware of what they should do.
3.4.1. Questionnaire Content
The validity and reliability of the questionnaire content depended on the
question items being adhered to, keeping in mind that the UAE is a very modern and
outgoing country. Direct questions where designed to answer two main research
questions (Appendix E):
1. Arab Leaders leadership style;
2. Leadership style as predictors toward organizational culture and employee
performance.
3.4.2. Interview Content
An effective and efficient way to collect and gather accurate qualitative data is
by using the method of interviewing. Interviews help collect data that are interesting
for the research and play a vital role in addressing some key questions and issues.
According to Opdenakker (2006), there are four main ways of conducting an
interview, which are: Face-to-Face, Live Messenger (MSN, Google, Skype, etc.),
Telephone and E-mail. The table given below shows four methods of interview
divided as per the synchronous and asynchronous communication in time and place.
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Table# 3.1: The Four Interview Methods
Type of
Communication
Time Place
Synchronous
communication
Face-to-Face,
Live Messenger (MSN,
Google, Skype, etc.),
Telephone
Face-to-Face,
Asynchronous
communication
E-mail E-mail
Live Messenger (MSN,
Google, Skype, etc.),
Telephone
Adapted from: Opdenakker (2006, p. 2)
Interviews that were sent by e-mail also known as e-mail interviews do have
some advantages which are very basic. E-mail interviews as stated by Brampton &
Colton (2002, paragraph 25) "provides a limited register for communication" which is
true in many ways and that is why a lot of researchers prefer face-to-face interviews
as they are held in reality and the researchers are able to know the answer on the spot
as the interviewees’ expressions are observed. For this research, the questions used for
the interview were straightforward and there was no intention to frustrate any
interviewee that was willing to help. In addition to that, in this research as mentioned
before I was able to use a combination of face-to-face and e-mail interviews to obtain
the data as rapidly as possible, based on the individual’s availability. Another major
reason for not conducting all interviews face-to-face and on Live messenger was due
to the lack of respondents present in all entities of the holding company as it was
during the summer and most of them travelled and did not want to be disturbed.
Additionally, telephone interviews were somewhat hard to conduct since I could not
get hold of many people and also the fact that the interviewees were not native
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English speakers which could have led to miscommunication and the purpose of
telephone interview would not have been met.
There were various issues faced due to the nature of the asynchronous
communication of time there were delays in the responses for which reminders were
sent to people to send the answers. Therefore, choosing to e-mail the interview was
arguably the most appropriate decision since this helped with collecting responses
quicker than the face-to-face method. The interview questions were simple and
straightforward and specific to the leadership styles used in the companies. All ten
questions were concise so that respondents were likely to have answers as soon as
they read the questions. Each question was different and none of the questions were
repeated. These facts ensured that the interviewees would be able to answer the
questions themselves and remain motivated to do so until the end.
3.5. Content Analysis
As stated by Krippendorff (1980), “there are six basic questions that must be
answered in a content analysis which are given below:
1) Which data are analysed?
2) How are they defined?
3) What is the population from which they are drawn?
4) What is the context relative to which the data are analysed?
5) What are the boundaries of the analysis?
6) What is the target of the inferences?
The primary data that needed to be gathered was only possible when a proper and
professional questionnaire was designed and distributed to the respondents in all
entities and collected back.
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It is very important to mention that the analysis of the questionnaires is very
different from the analysis of the interviews and these were done separately as data
from interviews were all qualitative while data from questionnaires were all
quantitative.
3.6. SPSS Analysis
Data present in the form of quantitative research that is collected when using
questionnaires to collect data requires a specialised software program known as SPSS.
SPSS, known as the Statistical Package for the Social Sciences, and is used by almost
every university student and universities to record data into the program in order to
get the required statistical analysis. It is a very useful and important collection of
software programs as it is able to provide some tests that help to validate the statistical
significance of the results. This research does not involve any arithmetical or
numerical data with a specific rate or equations, but only categorical which are
nominal in nature. Due to this reason only non-parametric tests are more specific, and
the best way to study the correlation between two variables is to use the Pearson's
correlation test. This is one of the most valid tests for the analysis of ordinal data as it
compares the linear relationship between two variables. To test for independence,
Pearson’s Chi-square can be used for categorical (i.e. ordinal or nominal) data, it
compares the frequencies to the expected frequencies for each cell in the table.
The data was then fed into a tabular format and then these tables were
exported to MS-Excel software where the graphs were interpreted. Each graph
represents the data that was fed into the table.
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3.7. Difficulties and Mitigation Methods
The main difficulties in this task rose when obtaining the responses from the
desired number of men and women in each of the four categories of respondents. The
number of questionnaires likely to be invalid/ incomplete or wasted contributed to the
rising costs of conducting this research. Also the use of both quantitative and
qualitative data made this entire research study a relatively time-consuming exercise.
To mitigate this difficulty, incidental sampling was used; the human resources
departments were contacted again through e-mails to provide further responses to fill
in the gaps of number of respondents for the research.
3.8. Professional, Legal and Ethical Issues
The nature of the research being what it is, that is the evaluation of people’s
perception of their leaders’ style/behaviour by male and female respondents across
different cultures will not involve any professional or legal issues. Also respondents
answered questions in their private capacity and only willing respondents were
requested to respond to the questionnaire.
However all research has an ethical perspective and ethical considerations
such as giving the respondents complete information and preserving the
confidentiality of their responses will be certainly followed. The ethical
considerations have been considered to be of great importance as in all research work.
The next chapter will provide detailed analysis of the research findings,
interpreting the data collected using SPSS software and then presenting them in a
tabular and graphical form by using MS-Excel software.
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CHAPTER 4: MAIN FINDINGS AND DATA ANALYSIS
4. Introduction
The previous chapters detailed the methodology of the research and reviewed
the literature in relation to leadership style, culture and performance of both
organization and employees. The concept presented in the previous chapters is tested
by investigating the relationship between Arab leadership style and employee
performance in four small scale entities of a holding organization. This chapter will
provide descriptive statistics of the data collected, as well as the results of the
reliability analysis.
4.1 Leaders Data Analysis
4.1.1 Qualitative Data
The four selected participants for this research are from the top management
of the holding companies, who are not only in the position of Chief Operating
Officers of their respective entities but also are board members of several other
entities/ organizations. Set of questions were formulated to understand these Arab
leaders leadership style, and test them as predictors driving employee’s performance.
Based on the responses we received, it is noticed that the majority of
respondents has some basic understanding and knowledge of the term leadership.
They haven’t been direct responses as transformational or transactional leadership
style; however, we were able to derive leadership style from the responses. For
example, as stated by the organization A CEO “I believe in leading by example” and
“leaders are individuals who can effectively inspire their teams” these indicates
behaviours of transformational leaders, with tendency of both idealized and
inspirational type of behaviours. He also demonstrated a few individualised leadership
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behaviours, as he stated “employee engagement is very essential” and his values of
integrity, accountability and empowerment all present’s optimistic visions such as in
transformational leaders style. He also mentioned importance of building the talent
pool and identifying potential future leaders.
The B organisation CEO had similar views as the A organisation CEO, with
tendency to have more of individualised and team spirit behaviours. As stated under
his leadership style, “one team all are responsible for each other”, most of the
statements by him included terms such as, team, inspire, creative, potential, feedback.
He has an open door policy and asserted his belief in open communication.
Unlike the previous two CEOs, the C organisation Chief Operating Officer
indicated a mix of transformational and transactional behaviours. On one hand he
showed some idealized and individualised attributes, such as delegation, coaching and
trust. At the same time, he seemed very results-oriented, as his success measures are,
overall team achievement. On the other hand, he indicated some constructive and
corrective behaviour. For instance, he believes in meeting employees when a problem
occurs or assistance is required. Also he believes in setting clear standards to meet
plans as well as compliance which then get evaluated with the overall outcomes of
employee’s performance.
The D organisation entity CEO, showed more transactional leadership
behaviour. Although he identified his approach as trust and empowerment, the fact
that he didn’t necessarily see the need to meet his subordinates except when needed as
they are provided with necessary guidance and tools to function accordingly,
indicated management-by-exception behaviour of transactional leadership.
Understanding the nature of the Chief Operating Officer’s job, he tends to travel often
from one operating country to another, which makes it difficult to have the emotional
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touch of transformational leadership behaviour with the employees. Whereby, major
communications takes place via the various available technologies (i.e. phone, emails,
blackberry and so forth).
Each of the above leaders had indicated different behaviours under each
leadership style, giving us room to evaluate the meaning of the data collected in a
more effective manner.
4.1.2 Summary of the Data Collected
The data is collected from the four entity’s leaders; the average age of
participants is 46 being 100% male. As presented in Table 4.1 of the leader’s
frequency, the majority of leaders believe they have more of the transformational
behaviour than the transactional leadership style.
Table 4.1: Descriptive Statistics of Leaders Ratings
N Minimum Maximum Mean Std. Deviation
Idealized 4 2.67 4.00 3.1667 .57735
Individualized 4 1.67 2.67 2.2500 .41944
Inspirational 4 1.33 2.67 1.9167 .56928
Intellectual 4 2.00 2.67 2.3333 .27217
Contingent Reward 4 .00 .33 .0833 .16667
Active 4 3.00 4.00 3.2500 .50000
Passive 4 2.00 2.75 2.3750 .32275
Valid N (listwise) 4
Each behavior had set of three attributes that would indicate the specified
behavior for the leader. The reliability test showed reliable data for two leadership
behaviours (idealized, individualized) and inspirational behaviours being average
(Cronbach’s alpha value is 0.686), but under the commonly applied .7 or .8 thresholds
for reliability, as shown below in Table 4.2. Initially the first run of reliability test did
not indicate reliable result for the individualised behaviour, for the second run one of
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the behaviours had to be removed to reach a highly reliable result. Whereas the
Intellectual leadership behaviour showed a weak reliability result (Cronbach’s alpha
value is 0.421).
Table 4.2: The reliability result for transformational behaviours factors of leaders
rating
Leadership Behaviours Standard Deviation
Cronbach's
Alpha
Transformational – Idealized 3 0.917
Transformational - Individualized 2 0.800
Transformational – Inspirational 3 0.686
Transformational – Intellectual 2 0.421
Table 4.3: The Reliability results for Transactional behaviours factors of leaders rating
Leadership Behaviours Standard Deviation Cronbach's Alpha
Transactional - Contingent Reward 2 0.727
Transactional - Management-by-exception (active) 4 1.00
Transactional - Management-by-exception (passive) 3 0.500
The data also showed high reliability for active management behaviour at
(Cronbach alpha value is 1.00) and contingent reward behaviour being (Cronbach
alpha value is 0.727) under transactional leadership style of Arab leaders as shown
above in Table 4.3.
4.2 Employees Rating Data Analysis
4.2.1 Demographic Summary
The data is collected from four different line of business under one holding
company. Below is a combined demographic summary presented in Table 4.4, which
shows that the median age of the participants was between 25-35 years, 55.7 percent
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of which are female, majority being from the middle level of management, and has
job tenure of minimum two to seven years. Also as shown the educational
qualification of the participants was between higher diploma and a bachelor degree.
Also having somewhat a balanced nationality ratio gives us higher reliability that the
respondent weren’t biased toward their leaders. In general the collected data shown in
Table 4.4 below indicate that generally we have a diverse set of backgrounds covering
a wide range of age group, educational background and nationality, total statistics can
be found in Appendix A.
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Table 4.4 Demographic
General Info Gender Marital
status Education Age
Organizational
Tenure
Job
Tenure
Job
Level Nationality Entity
Male 94
Female 118
Married 112
Unmarried 100
Less than high
school 6
High School 25
Higher Diploma
80
Bachelor 55
Masters & above
46
Less than 25 5
25 to 35 78
36 to 46 58
47 to 57 65
58 & above 6
one year or less
13
2 to 7 years 98
8 to 13 years 87
14 to 19 years 14
20 years or
above 0
one year or less
12
2 to 7 years 105
8 to 13 years 87
14 to 19 years 8
20 years or
above 0
First level 21
Middle level 108
Lower level 83
UAE National 98
Non UAE
National 114
Org- A 65
Org- B 50
Org- C 50
Org- D 47
Total 212 212 212 212 212 212 212 212 212
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4.2.2 Reliability
A Reliability test was conducted to estimate the reliability of our data from the
MLQ test. A total of seven leadership factors were used as demonstrated in both
Table 4.6 and 4.7 of transactional and transformational leadership behaviours. As
mentioned earlier, four leaders were involved in the survey and 212 participants of
mixture of different nationalities, ages and genders.
4.2.2.1 Leadership independent variable reliability:
The results in Table 4.5 below indicate that the MLQ factors generally are
reliable, for details of result refer to Appendix B. It is noted that there are different
leadership behaviours in Arab leaders as per the result of the collected data. Although
as shown below it seems that there are more transactional leadership style in Arab
leaders (Cronbach’s alpha value is 0.938) than the transformational leadership style,
the Cronbach’s alpha value of Inspirational and Intellectual leadership behaviours are
found to be highly reliable as is shown in Table 4.6.
Table 4.5: The reliability result for both transformational and transactional factors
Leadership Factors Standard Deviation Cronbach's Alpha
Transformational Leadership 12 0.885
Transactional Leadership 12 0.938
Table 4.6: The reliability result for transformational behaviours factors
Leadership Behaviours Standard Deviation Cronbach's Alpha
Transformational - Idealized 3 0.68
Transformational - Individualized 3 0.694
Transformational - Inspirational 2 0.872
Transformational - Intellectual 3 0.782
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Furthermore, the reliability test for transactional leadership behaviour showed
highly reliable results for two factors, highest for Transactional - Management-by-
exception (active) being (Cronbach’s alpha value is 0.958) as shown in Table 4.7.
Table 4.7: The reliability result for transactional behaviours factors
Leadership Behaviours Standard Deviation Cronbach's Alpha
Transactional - Contingent Reward 3 0.689
Transactional - Management-by-exception (active) 4 0.958
Transactional - Management-by-exception (passive) 4 0.933
4.2.2.2 Performance dependent variable reliability:
Similarly as illustrated in Table 4.8, the reliability test was conducted to
estimate the reliability of the employee performance factors. As illustrated below, the
Cronbach’s alpha reliability coefficients for the four factors of performance can be
considered (i.e. quantity of work, work enthusiasm, work skills and readiness to
innovation) all are higher than 0.8 which indicates that it is reliable.
Table 4.8: The reliability test for both work performance factors
Employee Performance Factors No of Items Cronbach's Alpha
Quantity of Work 4 0.81
Work enthusiasm 4 0.983
Work Skills 4 0.955
Readiness to innovate 5 0.874
4.2.3 Correlation
New variables has been generated using the function “Compute” to calculate
the values for the transactional and transformational variables which are composed
out of several question items. Then the correlation analysis has been run on the
computed variables for each leadership behaviour. The empirical results of the
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research show that there is a high relationship between Arab transformational leaders
and the employees’ performance. Table 4.9 presents the correlations among the
independent variables of leadership style and the dependent variables of employee
performance. As shown, there is a significant correlation between all four
transformational leadership styles and performance factors, except for inspirational
leadership and work skills. Having said that, there is a significant association between
the other three leadership behaviours and work skills at (.196**; .272**; .216**).
Similarly significant correlations were found between the idealized and individualized
behaviours and work enthusiasm, at 0.533** and 0.436**. This provides support for
our first hypothesis that there is a positive relationship between Arab leader’s
transformational leadership and employee’s performance.
From Table 4.9 it is also evident that there is a significant negative
relationship between transactional leadership (management-by-exception passive) and
all four employee performance variables. There is also a negative relationship
between transactional leadership style (management-by-exception active) which is
significant at the 1% level of confidence for three of the performance variables and at
the 5% level for work skills. Interestingly, transactional leadership (contingent
reward) is also significantly associated for 3 of the performance variables with only
quantity of work positive (but non-significant).
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Table 4.9: The correlation between the Transformational leadership behaviours and performance
TR -
Idealized
TR -
Individualized
TR -
Inspirational
TR -
Intellectual
TS -
Contingent Reward
TS -
Management-
by-exception (active)
TS -
Management-
by-exception (passive)
Quantity of Work
Work
Enthusiasm
Work Skills
Readiness
to Innovate
Transformational
- Idealized
Pearson
Correlation
Sig. (2-tailed) N 212
Transformational
- Individualized
Pearson
Correlation
.775**
Sig. (2-tailed) .000
N 212 212
Transformational
- Inspirational
Pearson
Correlation
.458** .439**
Sig. (2-tailed) .000 .000
N 212 212 212
Transformational
- Intellectual
Pearson
Correlation
.522** .558** .871**
Sig. (2-tailed) .000 .000 .000
N 212 212 212 212
Transactional -
Contingent
Reward
Pearson
Correlation
-.039 -.125 -.073 -.069
Sig. (2-tailed) .570 .068 .291 .319
N 212 212 212 212 212
Transactional - Management-by-
exception (active)
Pearson Correlation
-.782** -.695** -.519** -.549** .307**
Sig. (2-tailed) .000 .000 .000 .000 .000
N 212 212 212 212 212 212
Transactional - Management-by-
exception
(passive)
Pearson Correlation
-.806** -.703** -.510** -.538** .271** .946**
Sig. (2-tailed) .000 .000 .000 .000 .000 .000
N 212 212 212 212 212 212 212
Quantity of Work Pearson Correlation
.509** .565** .573** .700** .047 -.490** -.480**
Sig. (2-tailed) .000 .000 .000 .000 .495 .000 .000
N 212 212 212 212 212 212 212 212
Work
Enthusiasm
Pearson
Correlation
.533** .436** .349** .354** -.139* -.587** -.615** .336**
Sig. (2-tailed) .000 .000 .000 .000 .043 .000 .000 .000
N 212 212 212 212 212 212 212 212 212
Work Skills Pearson
Correlation
.196** .272** .129 .216** -.212** -.164* -.212** .346** .016
Sig. (2-tailed) .004 .000 .061 .002 .002 .017 .002 .000 .822
N 212 212 212 212 212 212 212 212 212 212
Readiness to
Innovate
Pearson
Correlation
.532** .475** .526** .597** -.135* -.630** -.622** .489** .375** .174*
Sig. (2-tailed) .000 .000 .000 .000 .049 .000 .000 .000 .000 .011
N 212 212 212 212 212 212 212 212 212 212 212
**. Correlation is significant at the 0.01 level (2-tailed). *. Correlation is significant at the 0.05 level (2-tailed).
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4.2.4. Regression
The study aimed at investigating the relationship between employee
performance and Arab leadership in four separate entities of one holding company.
First, the function “COMPUTE” was generated to calculate the values for both
dependent and independent variables which are composed out of several question
items to form one set for each tested variable. Then, a factor analysis was run for the
computed transformational, transaction and performance variables. Accordingly, the
below component analysis was generated, which indicated three factor analysis for
each of the variables.
Table 4.10: The Rotated Component Matrix
Component
1 2 3
Transformational – Idealized .775 .396 -.033
Transformational – Individualized .647 .458 -.172
Transformational – Inspirational .318 .780 .031
Transformational – Intellectual .328 .855 -.035
Transactional - Contingent Reward -.303 .238 .743
Transactional - Management-by-exception (active) -.874 -.311 .188
Transactional - Management-by-exception (passive) -.876 -.314 .193
Quantity of Work .249 .815 -.098
Work Enthusiasm .762 .109 .080
Work Skills -.104 .385 -.777
Readiness to Innovate .522 .518 -.097
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 6 iterations.
From the above table we were able to draw the following interpretation to
evaluate and support our regression analysis. As shown in Table 4.11, we first named
each component based on the fact that it presented. Accordingly, component one was
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named Individualized Vision, as it represented the two transformational variables that
indicated a highly positive relationship between idealized .775 and individualized
.647 leadership behaviors and work enthusiasm and employees readiness to innovate.
Whereas, both active and passive transactional leadership style shown significantly
negative relationship, at -.874 and -.876, with employee performance. The second
component was titled Intellectual Inspiration, due to the fact that a positive
relationship was found between inspirational .780 and intellectual .855 leadership
behaviors and quantity of work and readiness to innovate. Finally, the third
component that was a surprising result, shown that there is a negative relationship
between contingent reward behavior and employees work skills therefore this factor
was named Readiness to Learn.
Table 4.11: The Rotated Component Tested Factors Matrix
Factor Analysis
Component
Individualized Vision
Intellectual Inspiration
Readiness to
Learn New Skills
Transformational – Idealized .775
Transformational – Individualized .647
Transformational – Inspirational
.780
Transformational – Intellectual
.855
Transactional - Contingent Reward
.743
Transactional - Management-by-exception (active) -.874
Transactional - Management-by-exception (passive) -.876
Quantity of Work
.815
Work Enthusiasm .762
Work Skills
-.777
Readiness to Innovate .522 .518
Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 6 iterations.
Finally for further clarification on the relationship between Arab leadership
style and employee’s work performance two regression tests were conducted as
represented in Table 4.12. The regression analysis was tested against the previously
presented factor analysis. Both linear regression and logistic regression were used to
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establish a relationship between the dependent and independent variables. Linear
regression test is useful in estimating the resultant dependent variable in relation to
independent variables changes, whereas, logistic or binary logistic regression is used
to ascertain the probability of an event, which is captured in binary format.
Table 4.12: Linear Regression and Binary Logistic Regression Matrix
Regression Component
Quantity of
Work
Work
Enthusiasm
Work Skills Readiness to
Innovate
Transformational - Idealized * ** Transformational - Individualized ** * ** * Transformational - Inspirational * * Transformational - Intellectual * * * * Transactional - Contingent Reward Transactional - Management-by-exception (active)
*
Transactional - Management-by-exception
(passive)
* indicates Linear Regression
* indicates Binary Logistic Regression
** indicates combination of Linear Regression and Binary Logistic Regression
The above table shows a combination of linear and logistic regression matrix,
designed keeping in mind the three factor analysis produced earlier. The regression
analysis indicated a significant relationship between both individualised and idealised
leadership skills and employees work enthusiasm as well as their readiness to
innovate. This supports our first factor, Individualized vision, were both linear and
logistic regressions indicates significant relationship between idealized leadership
behaviours and the ability of employees to maintain enthusiasm and perform in an
innovative manner. In fact the regression analysis also, indicated highly significant
relationship between individualised behaviour of transformational leadership and the
employees’ quantity of work. Second factor, intellectual inspiration, has also shown a
positive relationship with employees work skills, general enthusiasm and their
readiness to innovate. Finally the third factor, readiness to learn, has not been
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satisfied, although the factor analysis shows highly significant relation between
employees readiness to learn new skills if it was associated with reward.
Multiple regression analysis was used to examine the three main factors
established from the factor analysis as shown in Table 4.11, this should also supports
our three main hypotheses. Below are the results of the regression analyses as
demonstrated in Tables 4.13 to 4.18.
Table 4.13 – Regression Analysis between Individualized Idealized Leadership Style and
Readiness to innovate
Model Summary
Model R R
Square
Adjusted R
Square
Std. Error of
the Estimate
Change Statistics
R Square
Change
F Change df1 df2 Sig. F
Change
1 .532a .283 .280 .432 .283 83.014 1 210 .000
a. Predictors: (Constant), Transformational - Idealized
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 15.499 1 15.499 83.014 .000b
Residual 39.209 210 .187
Total 54.708 211
a. Dependent Variable: Readiness to Innovate
b. Predictors: (Constant), Transformational - Idealized
Coefficientsa
Model Unstandardized
Coefficients
Standardized
Coefficients
t Sig. Correlations
B Std.
Error
Beta Zero-order Partial Part
1
(Constant) -.028 .313 -.088 .930
Transformational -
Idealized .992 .109 .532 9.111 .000 .532 .532 .532
a. Dependent Variable: Readiness to Innovate
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Table 4.14 – Regression Analysis between Individualized Idealized Leadership Style and
Work Enthusiasm
Model Summary
Model R R
Square
Adjusted
R Square
Std. Error of
the Estimate
Change Statistics
R Square
Change
F Change df1 df2 Sig. F
Change
1 .533a .284 .281 .402 .284 83.309 1 210 .000
a. Predictors: (Constant), Transformational - Idealized
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 13.441 1 13.441 83.309 .000b
Residual 33.880 210 .161
Total 47.321 211
a. Dependent Variable: Work Enthusiasm
b. Predictors: (Constant), Transformational - Idealized
Coefficientsa
Model Unstandardized
Coefficients
Standardized
Coefficients
t Sig. Correlations
B Std.
Error
Beta Zero-
order
Partial Part
1 (Constant) .303 .291 1.043 .298
Transformational - Idealized .924 .101 .533 9.127 .000 .533 .533 .533
a. Dependent Variable: Work Enthusiasm
Excluded Variablesa
Model Beta In t Sig. Partial
Correlation
Collinearity Statistics
Tolerance
1 Transformational -
Individualized .057b .619 .536 .043 .400
a. Dependent Variable: Work Enthusiasm
b. Predictors in the Model: (Constant), Transformational - Idealized
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Table 4.15 – Regression Analysis between Management-by-exception (Active/Passive)
Leadership Style and Work Enthusiasm
Model Summary
Model R R
Square
Adjusted
R Square
Std. Error of
the Estimate
Change Statistics
R Square
Change
F
Change
df1 df2 Sig. F Change
1 .615a .378 .376 .374 .378 127.875 1 210 .000
a. Predictors: (Constant), Transactional - Management-by-exception (passive)
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 17.909 1 17.909 127.875 .000b
Residual 29.411 210 .140
Total 47.321 211
a. Dependent Variable: Work Enthusiasm
b. Predictors: (Constant), Transactional - Management-by-exception (passive)
Coefficientsa
Model Unstandardized
Coefficients
Standardized
Coefficients
t Sig. Correlations
B Std.
Error
Beta Zero-
order
Partial Part
1
(Constant) 3.161 .032 98.418 .000
Transactional -
Management-by-
exception (passive)
-.265 .023 -.615 -11.308 .000 -.615 -.615 -.615
a. Dependent Variable: Work Enthusiasm
Excluded Variablesa
Model Beta In t Sig. Partial
Correlation
Collinearity Statistics
Tolerance
1
Transactional -
Management-by-exception
(active)
-.045b -.269 .789 -.019 .104
a. Dependent Variable: Work Enthusiasm
b. Predictors in the Model: (Constant), Transactional - Management-by-exception (passive)
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Table 4.16 – Regression Analysis between Management-by-exception (Active/Passive)
Leadership Style and Innovation
Model Summary
Model R R
Square
Adjusted
R Square
Std. Error of
the Estimate
Change Statistics
R Square
Change
F Change df1 df2 Sig. F Change
1 .630a .397 .394 .396 .397 138.060 1 210 .000
a. Predictors: (Constant), Transactional - Management-by-exception (active)
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 21.700 1 21.700 138.060 .000b
Residual 33.008 210 .157
Total 54.708 211
a. Dependent Variable: Readiness to Innovate
b. Predictors: (Constant), Transactional - Management-by-exception (active)
Coefficientsa
Model Unstandardized
Coefficients
Standardized
Coefficients
t Sig. Correlations
B Std.
Error
Beta Zero-
order
Partial Part
1
(Constant) 3.007 .032 93.762 .000
Transactional -
Management-by-exception
(active)
-.276 .023 -.630 -11.750 .000 -.630 -.630 -.630
a. Dependent Variable: Readiness to Innovate
Table 4.17 – Regression Analysis between Intellectual Inspiration Leadership Style and
Quantity of Work
Model Summary
Model R R
Square
Adjusted
R Square
Std. Error of
the Estimate
Change Statistics
R Square
Change
F Change df1 df2 Sig. F Change
1 .700a .490 .487 .280 .490 201.517 1 210 .000
a. Predictors: (Constant), Transformational - Intellectual
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ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 15.850 1 15.850 201.517 .000b
Residual 16.517 210 .079
Total 32.366 211
a. Dependent Variable: Quantity of Work
b. Predictors: (Constant), Transformational - Intellectual
Coefficientsa
Model Unstandardized
Coefficients
Standardized
Coefficients
t Sig. Correlations
B Std. Error Beta Zero-order Partial Part
1
(Constant) .638 .153 4.176 .000
Transformational -
Intellectual .699 .049 .700 14.196 .000 .700 .700 .700
a. Dependent Variable: Quantity of Work
Excluded Variablesa
Model Beta In t Sig. Partial
Correlation
Collinearity Statistics
Tolerance
1 Transformational -
Inspirational -.151b -1.507 .133 -.104 .242
a. Dependent Variable: Quantity of Work
b. Predictors in the Model: (Constant), Transformational - Intellectual
Table 4.18 – Regression Analysis between Intellectual Inspiration Leadership Style and
Readiness to innovate
Model Summary
Model R R
Square
Adjusted
R Square
Std. Error of
the Estimate
Change Statistics
R Square Change F Change df1 df2 Sig. F Change
1 .597
a .356 .353 .410 .356 116.009 1 210 .000
a. Predictors: (Constant), Transformational - Intellectual
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 19.468 1 19.468 116.009 .000b
Residual 35.240 210 .168
Total 54.708 211
a. Dependent Variable: Readiness to Innovate
b. Predictors: (Constant), Transformational - Intellectual
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Coefficientsa
Model Unstandardized
Coefficients
Standardized
Coefficients
t Sig. Correlations
B Std.
Error
Beta Zero-
order
Partial Part
1
(Constant) .424 .223 1.899 .059
Transformational -
Intellectual .774 .072 .597 10.771 .000 .597 .597 .597
a. Dependent Variable: Readiness to Innovate
Table 4.19 – Regression Analysis between Contingent Reward Leadership Style and
Work Skills
Model Summary
Model R R
Square
Adjusted
R Square
Std. Error of
the Estimate
Change Statistics
R Square
Change
F Change df1 df2 Sig. F
Change
1 .212a .045 .040 .348 .045 9.860 1 210 .002
a. Predictors: (Constant), Transactional - Contingent Reward
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 1.194 1 1.194 9.860 .002b
Residual 25.435 210 .121
Total 26.630 211
a. Dependent Variable: Work Skills
b. Predictors: (Constant), Transactional - Contingent Reward
Coefficientsa
Model Unstandardized
Coefficients
Standardized
Coefficients
t Sig. Correlations
B Std.
Error
Beta Zero-
order
Partial Part
1
(Constant) 3.629 .246 14.727 .000
Transactional - Contingent
Reward -.261 .083 -.212 -3.140 .002 -.212 -.212 -.212
a. Dependent Variable: Work Skills
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Three scenarios were designed to support our three main research hypotheses;
based on which the multiple regression test was conducted. Below are the three
Hypotheses:
Hypothesis1. There is a positive relationship between Arab leader transformational
leadership and employee performance.
Hypothesis2. There is a negative relationship between Arab leader transactional
leadership and employee performance.
Hypothesis3. Arab leadership styles (transformational and transactional) impact the
employee’s performance.
The multiple regression analysis test was conducted in support of our
previously conducted correlation test as well as to help us predict the accuracy of our
hypothesises. Leadership styles were used as the independent variables whereas the
employee performance was the dependant variables. As shown in Table 4.13, the first
table provided is the summary of the model that gives us the value of R and R2 for the
model. As shown R value is 53% and the value of Adjusted R2 is 28%, which tells us
that idealized style of leadership can account for 28% of the variation in employee’s
readiness to innovate. Whereas the R2 value is 28.3%, which implies a variance of
only 0.3%. Next is the ANOVA table output, this reports an analysis of variance
between the dependant and independent variables (Fields, 2013). For this test, F value
is 83.014 (p<0.001), which indicates significant prediction of positive relationship
between idealized leadership and employee’s readiness to innovate. This is also
supported by the standardized Coefficients of B value of 0.532(p<0.001) shown in the
coefficients table, which tells us that the regression model overall predict a significant
positive relationship between some of the idealised leadership style and employee’s
ability to innovate.
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Table 4.14 provides the predicted relationship between Individualized
Idealized Leadership Style and Work Enthusiasm. The model has excluded the
individualised leadership style from the independent variables as there was weaker
partial correlation with employee's work enthusiasm at 0.043 and a larger collinearity
tolerance at 0.400 with the idealised independent variable. Therefore the result of the
multiple regression analysis as shown in the model summary shows that 53.3% of
employee’s work enthusiasm is due to idealised leadership style in Arab leaders. With
an F Change value of 83.309 (p<0.001) indicating a significantly high relationship
between the dependent and independent variables. Furthermore, the coefficients
results showed a Beta value of .924, indicating a positive relationship between
idealised style and employee’s work enthusiasm. Moreover, the idealised leadership,
t(209)= .924, p<0.001), indicates a significant predictor of employee’s work
enthusiasm (212-2-1=209) with a significant positive contribution of a Beta value of
.533 (p<0.001). The above two tests provides a support to our H1, indicating a
significant relationship between some of our transformational leadership styles and
employee performance.
The multiple regression analysis presented in Table 4.15 between
management-by-exception (active/passive) leadership style and work enthusiasm
indicated significant relationship between the dependant and independent variables at
R value of 61.5%. Furthermore, Adjusted R2 value of 37.6%, tells us that
management-by-exception (active/passive) styles of leadership can account for
approximate 38% of employee’s work enthusiasm with a variance of only 0.2% less
in the outcome (37.8%-37.6%=0.2%). It has also reported an F-ratio of 127.875
(p<0.001) predicting a significant relationship between transactional leadership style
and employees work enthusiasm. This findings are consistent with the Pearson
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correlation test which found that there is a significantly negative relationship between
both active and passive leadership styles (-.587**, -.615**) and employees work
enthusiasm. It is also important to report that the regression test excluded the active
management style due to the high collinearity among the independent variables
(.946**) as reported earlier in the correlation test.
Another multiple regression test was run to predict the relationship between
management-by-exception (active/passive) leadership style and employee’s readiness
to innovate. As shown in Table 4.16, this transactional leadership style accounts for
39.4% of employee’s performance. The F-ratio value 138.060 (p<0.001) implies that
the model significantly improves the prediction of the relationship between
transactional management-by-exception active style and employees ability to
innovate. In addition, the results indicates that the relationship is significantly
negative showing Beta value of -.630 (p<0.001), which is also consistent with the
Pearson correlation test which found that there is a significantly negative relationship
between transactional active leadership style (-.630**) and employee’s performance.
The results of Tables 4.15 and 4.16 further support our H2 hypothesis in alignment
with our correlation and factor analysis tests.
Another multiple regression analysis test was run to help us analysis and
predict the accuracy of our second factor analysis, Intellectual Inspiration and
employee’s performance, Table 4.17. The test results showed R value of 70% and
Adjusted R2 value of 48.7%, which indicates that intellectual styles of leadership can
account for almost 48.7% of employee’s work enthusiasm with a variance of only
0.3% less in the outcome (49%-48.7%=0.3%). The ANOVA test indicated F-ratio
value 201.517 (p<0.001) that implies that the model significantly improves the ability
of transformational leadership in predicting employee’s work quantity. Furthermore,
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the intellectual stimulation leadership factor reported significantly and positively
correlations with employees work performance. While the test was run for both
intellectual and inspirational leadership style in relations to quantity of work, the
system has excluded the inspirational leadership style due the high collinarity between
the two independent variables (.871**). Therefore, in the next test again the
inspirational style has been removed and the test was run only for intellectual
independent variable with the readiness to innovate dependant variables. Accordingly,
Table 4.18, reported significant positive relationship between transformational
intellectual leadership style and employee’s readiness to innovate with Beta value of
.597. The model shows that transformational leadership style accounts for 35.3% of
employee’s willingness to innovate with a variance of 0.3% (35.6%- 35.3%=0.3%).
With an F-ratio value of 116.009 (p<0.001) implying that the model is significantly
able to predict the relationship between our dependant and independent variables.
This further supports our H1 hypothesis and all our previously reported results of
Pearson correlation, factor analysis and regressions analysis tests.
Finally Table 4.19, reports results of our last factor analysis prediction of the
negative relationship between contingent reward leadership style and employees work
skills. The Adjusted R2 value provides that contingent style accounts for 40% of the
variance in employees work skills. The F value 9.860 (p<0.005) indicates a
significant prediction of a relationship between the dependant variable of work skills
and leadership style being the independent variable. The standardized coefficients
tables, also reported a highly negative -.212 relationship, which was also reported
earlier by the correlation test (-.135*). Although this is rather weak result in
comparison to the previously reported tests of our other transactional leadership
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correlation with employee performance, it does shed some positive response to our
H2 hypothesis.
It is important to highlight that the above various tests indicated high
correlations between the sets of transformational leadership and transactional
leadership variables. On one hand, there were noticeably high positive collinarity
between intellectual and inspirational styles of leadership (.871**). Similarly, there
was high positive correlation between idealized and individualized styles (.775**).
On the other hand, there was highly negative relationship between the various
transformational and transactional style variables. For instance, as shown in Table 4.9
the correlation test for idealised and management-by-exception (active) was (-
.782**). Also another highly negative relationship was found between Transactional -
Management-by-exception (passive) and all of the transformational leadership styles
(-.806, -.703, -.538). The above multiple regression analysis tests results for
hypothesis one and two that were in line with the three factor analysis and our
correlations test, indicates that Arab leadership styles does have an impact on the
employee’s performance. The impact of both H1 and H2 analysis represents our H3
hypothesis of Arab transformational and transactional leadership style impacting
employee’s overall performance.
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CHAPTER 5: DISCUSSIONS
5. Introduction
The research aims to study Arab leader’s leadership style and its impact on
employee’s performance. The previous chapter presented the data collected from both
qualitative and quantitative research studies. Various leadership styles were
determined which were measured using Bass & Avolio MLQ questionnaire method
and expert interview schedule with the respective leaders. The data were collected
from four different entities, under one of the leading holding companies in Dubai.
This chapter will provide detailed description of the findings in relation with the
previously discussed literature review addressing the research’s main three
hypotheses. At the end of this chapter there is a brief discussion of the implications of
these findings for future research and practice.
5.1. Qualitative Study (Leadership Styles)
There are various methods and techniques that can be used in qualitative
research methods. For the purpose of this research, expert interview was the main and
easiest method as discussed earlier due to the time constraints. This type of research
approach involves high risks and concerns compared to quantitative methods and
that’s due to the high involvement of the researchers with the respondents/
interviewees and the research process to the extended that they seem to be part of the
respondent’s life (Creswell,1998). Also as was mentioned in the literature review, the
qualitative responses may be more open to bias and/or may not be accurate, moreover,
it takes time to get the feedback. In most qualitative research investigations a lot of
ethical concerns can arise as the data depends with personal opinions and feelings that
are gathered by the researcher.
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In addition to the above, many qualitative researchers used various designs for
their studies and used different methods, to explain their interpretations of the used
methods, like an interpretive paradigm, which is more based on trustworthiness as
opposed to the conventional, positivistic criteria of internal and external validity and
reliability (Denzin & Lincoln, 1994; Lincoln & Guba, 1985; Padgett, 1998). This
qualitative data collection emphasizes quality and meaning to allow the research to
focus on the topic of Arab leadership style as the main subject rather than quantity,
hence we limited the number of leaders to focus on one area. Although, as mentioned
earlier such research method has its own specific ethical concerns, however, the mix
of research methods used in this study allow us to have a balance of both qualitative
and quantitative methods that helps to reduce bias or unethical judgment of the
researcher toward the subjects of the study. The mix of participant viewpoint that is
found in the interviews and the results found in the form of numbers or correlations
from the quantitative research builds higher reliability for the study. The MLQ test
combines two different perspectives on leaders’ styles; one from the leaders
themselves and the second is from their subordinates across the organizations.
The qualitative research conducted by the researchers enables us to conclude
from the data provided to recognize that we had three transformational leaders and
one transactional leadership style. The findings show that Arab leaders hold a mix of
leadership style. The researcher believes that all participants hold somewhat of a mix
of both leadership styles, however, some leadership behaviours supersede others,
which brings us to the fact that leadership styles may vary from one individual to
another; however, it’s very much more likely to find mix leadership styles in one
individual. This is also supported by Bass (1997), who proposes that transformational
leadership is only an extension of transactional leadership. In this constant
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transforming age, it is necessary for leaders to possess more than one style to be able
to drive the organization toward its goal. Good leaders need to develop more than one
set of skills/behaviour that enables them to improve their organization performance
(Brown, 1992). All leadership styles are effective in their own way; however, it may
vary based on the individual or organizational values. For example, it can be result-
oriented and people or team- oriented, in which case transformational style of
leadership would be required to nourish those values. Also some organizations might
be focused more on stability and results, for that a transactional leadership style with
clear goals and procedures would be required to achieve the desired results. These
findings are consistent with previous research suggesting that cultural values in
organizations are driven by their leaders, which helps aligning goals and ensuring
performance.
5.2. Quantitative Study (Leaders Rating)
Leaders are not just rated because they have the term leader attached to them
but rather they are rated based on their performance in general, their individual
characteristics and mainly their role in the organization. Each type of leader is
different and the style of leadership varies as mentioned in the literature review.
Leadership styles differ in every possible way. Leaders have rated themselves
between good and best as the bad leaders do not exist or are not allowed to survive in
this world. However, it is noticed that many leaders has transactional styles, even
though they are recognized as transformational leaders. Both of these types which are
the transactional leadership style and the transformational leadership style in the Arab
world were compared and rated and based on the data collected it was seen that the
transformational style is more in demand and are appreciated or looked up to by
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employees, subordinates, to be more precise. However, as has been illustrated in
Figure 2, studies suggested that effective leadership style can drive performance based
on the various environmental forces (Kanji, 2008).
Although, the results shown earlier in both Table 4.6 and Table 4.7 indicate
that Arab leaders have a mix of leadership behaviours, these may vary from one
individual to another. This brings the overall result of leaders rating to be almost
similar to our qualitative research, as many transformational leadership behaviours
were noticed. Putting together our qualitative and quantitative results above, we can
draw the following conclusion with regard to our four Arab leaders:
1. Some Arab leaders have more of a transformational leadership style that can be seen
in their day-to-day behaviours.
2. Many Arab leaders have transactional leadership style that also can be visible in their
day-to-day operations.
3. Many Arab leaders hold a mixed type of leadership behaviours; some do supersede
others in a manner that helped categorizing them under either transformational or
transactional leadership style. Overall, both leadership style in Arab leaders results in
effective performance of the employees.
5.3. Quantitative Study (Employees Rating)
This research found that the Cronbach’s alpha reliability coefficient for the
MLQ test was greater than .7 for the majority of the research constructs. The
Cronbach’s alpha reliability coefficients for overall transformational leadership style
is good (Cronbach alpha value is 0.885), however, if we look at each behavioural
factor the Cronbach’s alpha reliability this is generally acceptable but rather weak as
shown in the Table 4.5. While the overall Cronbach’s alpha reliability coefficient of
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transactional leadership is highly reliable at Cronbach’s alpha 0.938, which is a good
sign. For the purpose of this research as stated earlier we have used the MLQ
instrument which is deemed to be a reliable measure for both transformational
leadership and transactional leadership style in Arab leaders both leaders rating and
employee rating. MLQ has proved to be valid and reliable measure for across cultures
and all types of organizations Bass & Avolio (1997). Furthermore, what has given this
research stronger reliability is the mix of research methods/techniques used. Leaders
leadership style had three different perspectives. The researcher’s view using
qualitative methods, leaders’ views and employees’ views of their leaders using the
MLQ technique.
The research designed by Suliman (2001) for the purpose of evaluating
performance, showed high Cronbach’s alpha reliability for all four factors as shown in
Table 4.8. Therefore, for this research, the design of Suliman (2001) is considered a
reliable measurement instrument for work performance as this allows the employees
to assess their performance in relation to their leader’s leadership style. The questions
were direct and to the point, yet related to how employees perceived their
performance and the level of their leader’s leadership style impacting their day-to-day
work and the effectiveness of their productivity.
Initial analysis found highly significant positive linear relationship between
employee performance and transformational leadership, through Pearson’s correlation
test. There is a significantly noticeable relationship between the employee’s readiness
to innovate and the inspirational leader’s leadership behaviour. Similarly, there is a
significant relationship between both individualised (.565*) and intellectual (.700**)
leaders and employees willingness to perform in larger quantity. This tells us that
leaders are advised to give specific attention to subordinates to build the sense of
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belonging and accordingly to have shared vision that leads to better performance.
Moreover, the idealised leaders have significantly high impact on employee’s
enthusiasm as well as readiness to innovate. This brings us to our first hypothesis,
which indicates that there is a positive relationship between Arab leaders’
transformational leadership style and employee performance. Transformational
leadership style allows employees to transform into what the leaders wants them to
do, with willingness. It builds those individuals who have potential within the
organizations, using these various leadership emphases.
It was also found that there was a highly significant negative linear
relationship between employee performance and transactional leadership, which
supports our second Hypothesis. As shown in Table 4.9, there is highly significant
negative relationship between Arab transactional leadership style and employee
performance. Although contingent reward leaders’ behaviour might drive employees
to complete a task, it lacked the enthusiasm and innovation. Also it showed that when
leaders focus on the individual’s mistakes and failures, they tend to negatively impact
the motivation and thus the performance. Arab leaders must realise that different
employees/individuals have different needs and abilities that’s needs catering to
achieve desired performance. There are common pitfalls that leaders tend to fall for,
as they grow into their role and their work pressure drives their behaviours and forms
their styles (Toegel & Barsoux, 2012). It is important for leaders to understand how
they are perceived as much as they must have self-awareness of their behaviours and
leadership style.
In addition to that, the regression analysis found that there is a significantly
high relationship between some of both transformational and transactional
leadership’s behaviours and various employee performance factors. Although not all
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the regression analysis showed that there is a significant relationship between
leadership style and employee performance, we can say that there is a noticeable weak
relationship between Arab leadership style and employee performance, which satisfies
our last hypothesis H3. Arab leaders must come to a level where they not only have
the awareness of their style, but also cherish it by working with their subordinates in a
manner that develops and motivates them. As stated by Toegel & Barsoux (2012) if
the leader tends toward being the type who always focuses on the big picture, he/she
must find a pragmatist team member; if the leader tend to be impulsive, he/she must
find employees who are more risk averse and so forth.
To be more precise, let’s draw the above discussion under our three main
hypotheses:
5.4 Hypothesis1: There is a positive relationship between Arab leader
transformational leadership and employee performance.
Various methods were used in this research to study the Arab leader’s style
and its impact on employee performance. The above findings show that there is high
correlation between “Idealized vision” as shown in Table 4.9. This is further
supported by the factor analysis, presented in Table 4.11, where the transformational
leadership factors were significantly positive. The results show that subordinates
under leaders holding behaviours such as individualised and idealised, demonstrate
higher performance. Individualised consideration advocates and achieves higher
demands from majority of people, as it indicates a high level of trust and
empowerment from top management. Studies also suggest that effective leadership
behaviours can facilitate the improvement of performance (McGrath & MacMillan,
2000; Teece, Pisano & Shuen, 1997).
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Intellectual Inspiration leadership behaviours also showed a highly positive
correlation with most of the performance measures, like, quantity of work and
enthusiasm and readiness to innovate. As suggested by Tannenbaum & Schmidt,
leadership inspiring and encouraging subordinates to deal with the situation more
innovatively, means ensuring a highly sustainable vision that enables them to
accomplish their desired performance (Kanji, 2008, p. 420). This is further supported
by the factor analysis results in Table 4.11, by suggesting new ways and encouraging
innovative ideas, leaders help improve workforce skills and reframe old approaches,
which facilitate performance.
Leaders using transformational styles encourage ideas and motivate
individuals to follow visions and shape their organization’s future. The C organisation
entity CEO stated under his values that “everyone is creative, everyone has potential
and everyone is a leader”. Such leadership style creates empowerment and increase
loyalty and integrity in the organization. As suggest by Zhu et al. (2005) visionary
leaders improve cohesion, commitment, motivation and thus performance.
Transformational leaders believe in building the bridge between organizational goals
while fulfilling the individual employees’ needs through high performance (Bass,
1985).
5.6 Hypothesis2: There is a negative relationship between Arab leader
transactional leadership and employee performance.
The correlation findings in Table 4.9, shows significantly negative (p<0.01)
correlation between Management by Exception (active and passive) and most of the
employee’s performance factors. Furthermore, Table 4.11 shows that “individualized
vision” factor containing Management-by-Exception has a significantly high negative
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relationship with employee’s performance. This is further supported by the literature
review, where studies suggest that this type of leadership style focuses on mistakes
and errors and deals with them when it occurs, making work more instrumental for
subordinates with fairly clear guidance that aligns with the overall goals (Brand et al.
2000) and, in general, is less effective than are transformational styles.
Further study of the impact of the transactional leadership behaviors on
employee performance illustrated in Table 4.11, shows that contingent reward
transactional leadership factor has significant negative correlation with readiness to
learn new skills . The correlation findings shown in Table 4.9 indicate a significantly
negative relation between contingent reward leadership behavior and employees’
willingness to learn new skills, and show a similar strength of association between
transactional leadership (management-by-exception passive) and willingness to learn
new skills (p<0.01). While the correlation between contingent reward attribute and 3
out of 4 of the performance is significant and negatively associated at p<0.05 or
<0.01. As further stated in the literature review, contingent reward style is identified
for its clarity of objectives and expected outcomes, so these findings are more
negative associations than has been found in a variety of other transformational
leadership research studies where these findings would be more typical of the
Management-by-exception (passive) style which implies less clarity and focuses more
on mistakes and punishments.
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5.7 Hypothesis3: Arab leadership styles (transformational and transactional)
impact the employee’s performance.
If Hypothesis 1 and Hypothesis 2 are taken as the foundation for this research,
we can say that there is a highly significant relationship between leadership style and
employee’s performance. As stated earlier, transformational leadership is nothing but
an extension of transactional leadership (Bass, 1997). One that helps followers to
reach beyond their expectations providing all the required means to achieve beyond
expectations whereas the other merely encourages achieving expected results. The
finding in Table 4.9 shows a significant correlation between all transformational and
transactional leadership behaviors and the various employee performances attributes,
except for transformational leadership inspirational behaviors and work skills, and,
transactional leadership continent reward behaviours and quantity of work. In
addition to that, the factor analysis presented in Table 4.11, clearly indicated a high,
positive relationship between two transformational leadership factors (“individualized
vision” and “intellectual inspiration”) and 3 out of 4 of the performance factors
(quantity of work, work enthusiasm and readiness to innovate).
Many studies suggest that leadership style is seen as a key source of
organizational performance (Purcell et al. 2004). Leaders with their various leadership
styles create a culture that supports their vision and goal. Individualized consideration
style creates a culture that drives individuals to out-perform and brings in healthy
competitiveness in the organization. Also the contingent reward leadership style,
builds clear road maps for subordinates to follow and uses incentives to influence the
result of the perform. As was clear from the factor analysis shown in Table 4.11,
contingent reward can influence employee’s readiness to learn (this negative
association is nonetheless surprising and contrary to what would be expected). Bass
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(1985) also suggest that alignment of reward and clear goals results in higher levels of
performance by individuals and for organizations’ outcomes.
The impact of leadership style on individuals is not questionable at this stage,
since many research studies have provided evidence for that hypothesis. The question
however was whether Arab leaders had a distinctive leadership style, and if so, does it
impact on employees, which the findings were able to address. It is clear that this
study requires further research to have stronger outcomes. However, the above result
gives a starting point that encourages us to engage in further studies within this field.
Arab leaders mainly in the UAE have shown vast improvement and development in
many areas. It would certainly be interesting to study those different abilities that
these Arab leaders have within their leadership’s styles, what and how that style
drives organizations to perform.
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CHAPTER 6: RECOMMENDATIONS & CONCLUSION
6. Introduction
The previous chapters discussed the theoretical background of the research
topic, methods of obtaining relevant information and facts and the subsequent results.
This chapter will conclude on the previous chapter’s research analysis and discussion,
highlighting the limitations of the research, recommendations, keeping in mind the
broad objectives of this research, which were to examine the relationship between
Arab leaders’ leadership style and its impact on organizational and employee’s
performance.
6.1 Limitations of the Research
The research had various constraints that limited its success in strongly
providing confirmation and support for its hypotheses. The result did identify a
relationship between Arab leadership as discussed in the previous chapter; however, it
was not sufficient to strongly support the researcher’s concept of leadership and
culture. Below we have discussed some of the limitations of the research:
Being a working student it was hard to have easy access to the instruments
used, that’s the SPSS program. It is quite costly to purchase, as such software is
mainly used by large organizations that mainly does statistics and/or by students for
their researches and it is usually available only available at the campus. This initially
posed a problem in finding the time to be at the university only for the purpose of
conducting the analysis. This problem was overcome with the support of a friend of
the researcher, who shared the software license he had in support of this study.
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The researcher has used various methods to study the leadership style, some of
which were new to the researcher and caused slight confusion that required further
reading for better understanding of the concept used. Linking qualitative and MLQ
quantitative methods for four different entity’s leadership style and the performance
of those employees thus was a challenge.
The researcher also assumed that having different sectors under one main
leadership style though managed by four different leaders could be easier and rather
effective way to support the research theory. Further, it was seen that the unique
characteristics of these four sector organizations should have also impact the
relevance of findings in these research areas. As it is an easy access to different
sector’s leadership style and employee performance, however, it appeared not to be
very effective for one major reason that being the data generated for the research was
limited to fewer employees, which was insufficient to provide stronger and clearer
results.
Another factor that maybe had a severe impact on the outcome of the study is that,
the study was conducted during the economic downturn in Dubai. Were the company
had to lay-off a number of its employees as well as cut salaries. This fear of
uncertainty and instability might have reflected the responses, of employees in two
extremes. First, there might be employees who were significantly negative, due to the
bitter experience of losing a colleague or having a family member who lost a job;
second, is being extremely positive in responses for fearing this information might be
shared with management which may affect their current employment and career
status.
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6.2 Recommendations
Considering the facts of the findings of this research there are various implications
that need to be highlighted. Leaders and employees together are the backbone of any
organization; they can drive the organization towards success or failure. It is
important to have great teams that perform towards desired objectives and targets, but
it is more essential to have a great leader who drives the team. Below are some
aspects that require further consideration for a research:
It was generally perceived that although there was a slight positive
relationship between Arab transformational leaders, it was rather weak.
Likewise the highly negative impact of transactional leaders leadership style,
draws our attention to their impact on the overall performance of the
organization, thus this means that there is a need to implement leadership style
management and training of managers to adapt to this field as assessing
employee performance is the way that will yield effective company
performance in the end. It is highly essential for leaders to recognize and to
ensure that employees are happy and their basic needs are fulfilled and in
alignment with the organization’s needs to enhance performance. The most
important factor that leaders must realize is their impact on the employees’
overall performance, as well as, the importance of maintaining a motivated
workforce to run a successful business.
Due to the lack of empirical data, this research can be further taken forward
and implemented in different organizations around Dubai, however, larger
scale organizations must be considered. Future research could be conducted
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comparing various homogenous demographic populations to further benefit
the instrument’s validity. Similar unique characteristics and environments can
be used to evaluate and compare the impact on future findings.
The above results also show that there is some strong contingent effect on the
original relationship between some of the independent and dependent variables. It is
clear that there is certainly a relationship between leadership style and employee
performance, which calls Arab leaders to focus on using it to their best. First Arab
leaders need to focus on enhancing these leadership styles, through leadership
management programs in order to first be self-aware of their own behaviours and then
understand which behaviour to be used with which individual to maximise
performance. It is vital for these Arab leaders to understand their role as coach and
mentors to help their employees grow and subsequently help the organization grow.
Second, leaders need to focus on empowering and enabling their employees; these
two factors will indirectly encourage employees to have shared vision with the
organization.
Finally, the findings have three major practical applications for our four leaders.
(1) Leaders must acknowledge that the best way to increase performance is by
empowering employees, and should aim to develop those individuals who exhibit
characteristics of potentially high performing employees. (2) Leaders should adopt
leadership styles that drive performance within their firms to drive the employees to
perform. They must adjust their behaviours and styles in a ways to enhance
subordinates’ work enthusiasm and accordingly performance, to achieve desired
goals. (3) Leaders’ characteristics should be considered when appointing leaders to
further enhance and increase employee performance, similarly, when recruiting a new
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member to the department, employees’ characteristic must be examined carefully to
best fit the department and leader’s needs.
It is also important to note that during the literature review the link between
leadership and organization culture has been highlighted as a factor that builds on
employee performance. This research, however, did not take into account the cultural
aspect during the analysis and data collection, which might have brought stronger
argument that positively reflects the result of our research topic.
6.3 Conclusion
As mentioned earlier, the overall objective of this research is to examine the
relationship between leadership style (transactional and transformational) and its
impact on organizational and employee performance. The researcher’s intention was
to examine whether Arab leaders had any leadership style and the links of their
leadership style with both organizational and individual employee performance. A
literature review was been presented in chapter two, to draw the outline for the
concept/argument via various studies and previous researches within the same context
or to support the concept. Then, for a proper study purpose of the leadership style,
four main leadership behavioural independent variables were used for
transformational leadership style and three variables for the transformational style.
Also, dependent variables were considered to examine employee work performance
both of which was investigated using a combination of two specific research methods
that were linked to three main hypotheses. Qualitative research was conducted to
study leadership style from the researcher’s point of view and to support the
quantitative research that was designed to study the same but from the leaders’ and
the employees’ prospective. Also, a quantitative research using Suliman (2001)
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proposals was conducted to measure the work performance, linking it to the
leadership style. Both research methods and proposals used were proven highly
successful in identifying the main findings of the research.
Although the Arab leaders’ leadership style showed significant reliable values,
the overall regression finding of the research wasn’t significantly high in supporting
the concept of the research. The first hypothesis indicated linear regression analysis
between transformational leadership style in Arab leaders and some aspects of work
performance through individualized leadership behaviour. The second hypothesis
showed significant positive linear relationship between contingent reward behaviour
of Arab transactional leadership style and work performance, which must be noted
that the linear regression analysis of the study showed different results than was
anticipated by the researcher or even by the correlation test. The overall correlation
between the independent transformational leaders leadership style and employee
performance showed a highly negative relationship, which proves our second
hypothesis. The findings also showed a relatively weak relationship between Arab
Transformational and Transactional leadership style and employee/organization
performance (Hypothesis three).
Overall, the result are not sufficient to strongly support the argument of the
research study, but does suggest that employee’s performance as well as organization
performance is associated with their respective leadership style.
This thesis highlights three main contributions that can be further researched.
The first is the study of Arab leadership styles and whether it is inherited, developed
or is natural skill. The second contribution is introducing the Arab leadership style
being associated in various ways with employee performance in general. The third
contribution is the theory of Arab leadership style that emphasizes their role in
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shaping organization cultures especially in the Middle East as majority of the
organizations are family owned.
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APPENDICES
Appendix A: Descriptive Statistics
A.1 Gender of respondent
Frequency Percent Valid Percent Cumulative Percent
Valid
Male 94 44.3 44.3 44.3
Female 118 55.7 55.7 100.0
Total 212 100.0 100.0
A.2 Marital Status
Frequency Percent Valid Percent Cumulative Percent
Valid
Married 112 52.8 52.8 52.8
Unmarried 100 47.2 47.2 100.0
Total 212 100.0 100.0
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A.3 Age
Frequency Percent Valid Percent Cumulative Percent
Valid
Less than 25 5 2.4 2.4 2.4
25- 35 78 36.8 36.8 39.2
36 - 46 58 27.4 27.4 66.5
47- 57 65 30.7 30.7 97.2
58 or above 6 2.8 2.8 100.0
Total 212 100.0 100.0
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A.4 Nationality
Frequency Percent Valid Percent Cumulative Percent
Valid
UAE National 98 46.2 46.2 46.2
Non UAE national 114 53.8 53.8 100.0
Total 212 100.0 100.0
A.5 Education
Frequency Percent Valid Percent Cumulative Percent
Valid
Less than high school 6 2.8 2.8 2.8
High School 25 11.8 11.8 14.6
college degree 60 28.3 28.3 42.9
Higher Diploma 75 35.4 35.4 78.3
Bachelor 46 21.7 21.7 100.0
Total 212 100.0 100.0
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A.6 No of years in current organization
Frequ
ency
Percent Valid Percent Cumulative Percent
Valid
one year or less 13 6.1 6.1 6.1
2 - 7 98 46.2 46.2 52.4
8 - 13 87 41.0 41.0 93.4
14 - 19 14 6.6 6.6 100.0
Total 212 100.0 100.0
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A.7 No of years in current Job
Frequency Percent Valid Percent Cumulative Percent
Valid
one year or less 12 5.7 5.7 5.7
2 - 7 105 49.5 49.5 55.2
8 - 13 87 41.0 41.0 96.2
14 - 19 8 3.8 3.8 100.0
Total 212 100.0 100.0
A.8 Job Status
Frequency Percent Valid Percent Cumulative Percent
Valid
first level 21 9.9 9.9 9.9
middle level 108 50.9 50.9 60.8
lower level 83 39.2 39.2 100.0
Total 212 100.0 100.0
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Appendix B: Reliability Analysis
B.1 MLQ
B.1.1 Transformational Factors
Cronbach's Alpha N of Items
.885 12
B.1.1.1 Idealized Attributes
Cronbach's Alpha N of Items
.680 3
Item Statistics
Mean Std. Deviation N
Item 1 of Transformational Leadership factor 2.84 .376 212
Item 4 of Transformational Leadership factor 2.98 .136 212
Item 5 of Transformational Leadership factor 2.75 .455 212
B.1.1.2 Individualized Attributes
Cronbach's Alpha N of Items
.694 3
Item Statistics
Mean Std. Deviation N
Item 6 of Transformational Leadership factor 2.83 .389 212
Item 8 of Transformational Leadership factor 2.92 .265 212
Item 9 of Transformational Leadership factor 2.88 .329 212
B.1.1.3 Inspirational Attributes
Cronbach's Alpha N of Items
.872 2
Item Statistics
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Mean Std. Deviation N
Item 3 of Transformational Leadership factor 3.10 .411 212
Item 11 of Transformational Leadership factor 3.05 .508 212
B.1.1.4 Intellectual Attributes
Cronbach's Alpha N of Items
.782 3
Item Statistics
Mean Std. Deviation N
Item 2 of Transformational Leadership factor 3.15 .517 212
Item 10 of Transformational Leadership factor 3.08 .449 212
Item 12 of Transformational Leadership factor 3.00 .441 212
B.1.2 Transactional Factors
Cronbach's Alpha N of Items
.938 12
B.1.2.1 Contingent Reward Attributes
Cronbach's Alpha N of Items
.689 3
Item Statistics
Mean Std. Deviation N
Item 1 of Transactional Leadership factor 2.93 .364 212
Item 4 of Transactional Leadership factor 2.94 .385 212
Item 6 of Transactional Leadership factor 2.96 .349 212
B.1.2.2 Management-by-exception (active)
Cronbach's Alpha N of Items
.968 4
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Item Statistics
Mean Std. Deviation N
Item 2 of Transactional Leadership factor .98 1.162 212
Item 9 of Transactional Leadership factor .62 1.176 212
Item 10 of Transactional Leadership factor .66 1.323 212
Item 11 of Transactional Leadership factor .63 1.203 212
B.1.2.3 Management-by-exception (passive)
Cronbach's Alpha N of Items
.933 4
Item Statistics
Mean Std. Deviation N
Item 3 of Transactional Leadership factor .88 1.216 212
Item 5 of Transactional Leadership factor 1.24 1.206 212
Item 7 of Transactional Leadership factor .58 1.184 212
Item 8 of Transactional Leadership factor .59 1.215 212
B.2 Employee work performance
B.2.1 Work Quantity Factors
Reliability Statistics
Cronbach's Alpha N of Items
.810 4
Item Statistics
Mean Std. Deviation N
Item 1 of work quantity factor 2.89 .416 212
Item 2 of work quantity factor 2.39 .560 212
Item 3 of work quantity factor 2.93 .467 212
Item 4 of work quantity factor 2.95 .508 212
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B.2.2 Work Enthusiasm Factors
Reliability Statistics
Cronbach's Alpha N of Items
.983 4
Item Statistics
Mean Std. Deviation N
Item 1 of work enthusiasm factor 2.93 .492 212
Item 2 of work enthusiasm factor 2.93 .502 212
Item 3 of work enthusiasm factor 2.98 .440 212
Item 4 of work enthusiasm factor 2.93 .506 212
B.2.3 Work Skills Factors
Cronbach's Alpha N of Items
.955 4
Item Statistics
Mean Std. Deviation N
Item 1 of work skills factor 2.85 .367 212
Item 2 of work skills factor 2.88 .382 212
Item 3 of work skills factor 2.87 .353 212
Item 4 of work skills factor 2.83 .409 212
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B.2.4 Work Skills Factors
Cronbach's Alpha N of Items
.874 5
Item Statistics
Mean Std. Deviation N
Item 1 of readiness to innovate factor 2.57 .809 212
Item 2 of readiness to innovate factor 2.85 .556 212
Item 3 of readiness to innovate factor 2.88 .626 212
Item 4 of readiness to innovate factor 2.87 .543 212
Item 5 of readiness to innovate factor 2.87 .549 212
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Appendix C: Correlation
Dependent/Indepe
ndent Variables
Work Quantity Work Enthusiasm Work Skills Readiness to Innovate T
ran
sfo
rma
tio
na
l -
Idea
lize
d
Pearson
Correlation
.437**
.152* .477
*
*
.528*
*
.533*
*
.473*
*
.378*
*
.515*
*
.075 .163* .166
* .110 .356
*
*
.386*
*
.421*
*
.525*
*
.340**
Sig. (2-
tailed)
.000 .027 .000 .000 .000 .000 .000 .000 .280 .017 .016 .112 .000 .000 .000 .000 .000
N 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212
Pearson
Correlation
.214**
.096 .202*
*
.191*
*
.193*
*
.190*
*
.229*
*
.187*
*
-.055 -.045 .145* .029 .098 .087 .306
*
*
.222*
*
.221**
Sig. (2-
tailed)
.002 .164 .003 .005 .005 .006 .001 .006 .423 .518 .035 .676 .155 .205 .000 .001 .001
N 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212
Pearson
Correlation
.407**
.176* .452
*
*
.456*
*
.518*
*
.488*
*
.420*
*
.499*
*
.177*
*
.232*
*
.295*
*
.185*
*
.312*
*
.393*
*
.457*
*
.517*
*
.384**
Sig. (2-
tailed)
.000 .010 .000 .000 .000 .000 .000 .000 .010 .001 .000 .007 .000 .000 .000 .000 .000
N 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212
Tra
nsf
orm
ati
on
al
- In
div
idu
ali
zed
Pearson
Correlation
.296**
-.067 .325*
*
.291*
*
.511*
*
.453*
*
.392*
*
.493*
*
-.009 .051 .078 .061 .265*
*
.276*
*
.284*
*
.387*
*
.254**
Sig. (2-
tailed)
.000 .332 .000 .000 .000 .000 .000 .000 .899 .464 .261 .374 .000 .000 .000 .000 .000
N 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212
Pearson
Correlation
.442**
.293*
*
.570*
*
.535*
*
.180*
*
.176* .188
*
*
.172* .325
*
*
.376*
*
.451*
*
.366*
*
.291*
*
.212*
*
.401*
*
.457*
*
.423**
Sig. (2-
tailed)
.000 .000 .000 .000 .009 .010 .006 .012 .000 .000 .000 .000 .000 .002 .000 .000 .000
N 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212
Pearson
Correlation
.457**
.336*
*
.561*
*
.586*
*
.301*
*
.324*
*
.340*
*
.318*
*
.204*
*
.257*
*
.309*
*
.237*
*
.175* .209
*
*
.410*
*
.413*
*
.386**
Sig. (2-
tailed)
.000 .000 .000 .000 .000 .000 .000 .000 .003 .000 .000 .001 .011 .002 .000 .000 .000
N 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212
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Dependent/Indepe
ndent Variables
Work Quantity Work Enthusiasm Work Skills Readiness to Innovate
Tra
nsf
orm
ati
on
al
- In
spir
ati
on
al
Pearson
Correlation
.426**
.380*
*
.458*
*
.343*
*
.198*
*
.194*
*
.197*
*
.195*
*
.101 .111 .127 .131 .306*
*
.359*
*
.344*
*
.380*
*
.416**
Sig. (2-
tailed)
.000 .000 .000 .000 .004 .005 .004 .004 .143 .106 .064 .058 .000 .000 .000 .000 .000
N 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212
Pearson
Correlation
.227**
.087 .225*
*
.341*
*
.306*
*
.323*
*
.340*
*
.298*
*
.009 .037 .106 .037 .097 .213*
*
.298*
*
.280*
*
.256**
Sig. (2-
tailed)
.001 .209 .001 .000 .000 .000 .000 .000 .895 .588 .124 .588 .158 .002 .000 .000 .000
N 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212
Pearson
Correlation
.475**
.412*
*
.536*
*
.451*
*
.412*
*
.441*
*
.429*
*
.420*
*
.041 .155* .171
* .087 .297
*
*
.464*
*
.541*
*
.540*
*
.500**
Sig. (2-
tailed)
.000 .000 .000 .000 .000 .000 .000 .000 .554 .024 .013 .206 .000 .000 .000 .000 .000
N 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212
Tra
nsf
orm
ati
on
al
- In
tell
ectu
al
Pearson
Correlation
.537**
.474*
*
.573*
*
.498*
*
.336*
*
.330*
*
.348*
*
.330*
*
.013 .115 .106 .070 .411*
*
.456*
*
.582*
*
.541*
*
.533**
Sig. (2-
tailed)
.000 .000 .000 .000 .000 .000 .000 .000 .847 .095 .123 .311 .000 .000 .000 .000 .000
N 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212
Pearson
Correlation
.456**
.397*
*
.504*
*
.415*
*
.262*
*
.257*
*
.250*
*
.256*
*
.133 .172* .161
* .180
*
*
.336*
*
.375*
*
.391*
*
.416*
*
.448**
Sig. (2-
tailed)
.000 .000 .000 .000 .000 .000 .000 .000 .053 .012 .019 .009 .000 .000 .000 .000 .000
N 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212
Pearson
Correlation
.391**
.319*
*
.555*
*
.530*
*
.264*
*
.259*
*
.294*
*
.257*
*
.209*
*
.285*
*
.339*
*
.320*
*
.285*
*
.293*
*
.363*
*
.359*
*
.394**
Sig. (2-
tailed)
.000 .000 .000 .000 .000 .000 .000 .000 .002 .000 .000 .000 .000 .000 .000 .000 .000
N 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212
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Dependent/Indepe
ndent Variables
Work Quantity Work Enthusiasm Work Skills Readiness to Innovate
Tra
nsa
ctio
na
l -
Co
nti
ng
ent
Rew
ard
Pearson
Correlation
.074 .019 -.085 -.020 -.079 -.104 -.099 -.079 -
.149*
-
.199*
*
-
.147*
-
.175*
-.023 -
.170*
-
.205*
*
-
.191*
*
-.188**
Sig. (2-
tailed)
.282 .787 .215 .773 .251 .133 .150 .253 .030 .004 .033 .011 .737 .013 .003 .005 .006
N 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212
Pearson
Correlation
.169* .014 .057 .130 .005 .005 .020 .004 -.092 -.080 -.125 -
.150*
-.002 -.018 -.068 -.036 .011
Sig. (2-
tailed)
.014 .839 .411 .058 .940 .941 .772 .958 .181 .249 .070 .029 .973 .795 .323 .603 .878
N 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212
Pearson
Correlation
.102 .051 -.075 -.065 -
.235*
*
-
.285*
*
-
.222*
*
-
.257*
*
-
.154*
-
.177*
*
-
.194*
*
-
.243*
*
-.041 -.103 -
.151*
-.126 -.099
Sig. (2-
tailed)
.138 .462 .279 .349 .001 .000 .001 .000 .025 .010 .004 .000 .554 .136 .028 .066 .149
N 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212
Pearson
Correlation
-.124 -.059 -
.208*
*
-.002 -.028 -.061 .016 -.024 -.109 -.124 -.126 -.126 -.111 -.131 -.103 -
.238*
*
-.176*
Sig. (2-
tailed)
.071 .390 .002 .975 .686 .375 .813 .724 .112 .072 .067 .068 .108 .057 .136 .000 .010
N 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212
Tra
nsa
ctio
na
l -
Ma
na
gem
ent-
by
-ex
cep
tio
n
(act
ive)
Pearson
Correlation
-.427**
-
.292*
*
-
.440*
*
-
.468*
*
-
.525*
*
-
.523*
*
-
.418*
*
-
.527*
*
-.053 -
.145*
-
.158*
-.108 -
.384*
*
-
.549*
*
-
.583*
*
-
.628*
*
-.547**
Sig. (2-
tailed)
.000 .000 .000 .000 .000 .000 .000 .000 .447 .034 .022 .117 .000 .000 .000 .000 .000
N 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212
Pearson
Correlation
-.376**
-
.170*
-
.473*
*
-
.477*
*
-
.601*
*
-
.589*
*
-
.457*
*
-
.603*
*
-.119 -
.200*
*
-
.213*
*
-
.181*
*
-
.397*
*
-
.466*
*
-
.508*
*
-
.620*
*
-.450**
Sig. (2-
tailed)
.000 .013 .000 .000 .000 .000 .000 .000 .084 .004 .002 .008 .000 .000 .000 .000 .000
N 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212
Pearson
Correlation
-.394**
-
.193*
*
-
.500*
*
-
.499*
*
-
.588*
*
-
.584*
*
-
.461*
*
-
.589*
*
-.083 -
.167*
-
.167*
-
.139*
-
.380*
*
-
.470*
*
-
.525*
*
-
.623*
*
-.471**
Sig. (2-
tailed)
.000 .005 .000 .000 .000 .000 .000 .000 .228 .015 .015 .043 .000 .000 .000 .000 .000
N 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212
Pearson
Correlation
-.326**
-
.196*
*
-
.443*
*
-
.443*
*
-
.594*
*
-
.590*
*
-
.473*
*
-
.596*
*
-.101 -
.171*
-
.193*
*
-
.163*
-
.319*
*
-
.516*
*
-
.551*
*
-
.669*
*
-.524**
Sig. (2-
tailed)
.000 .004 .000 .000 .000 .000 .000 .000 .143 .013 .005 .018 .000 .000 .000 .000 .000
N 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212
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Tra
nsa
ctio
na
l -
Man
ag
emen
t-b
y-e
xce
pti
on
(p
ass
ive)
Pearson -.410** -
.239**
-.449** -.463** -.544** -.541** -.439** -.545** -.060 -.154* -.158* -.116 -.442** -.475** -.517** -.569** -.420**
Sig. (2- .000 .000 .000 .000 .000 .000 .000 .000 .385 .025 .021 .093 .000 .000 .000 .000 .000
N 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212
Pearson -.307** -.061 -.399** -.421** -.500** -.491** -.418** -.501** -.284** -.296** -
.337**
-
.333**
-.331** -.462** -.406** -.516** -.398**
Sig. (2- .000 .375 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000
N 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212
Pearson -.373** -.158* -.475** -.486** -.650** -.638** -.519** -.652** -.078 -.168* -.169* -.146* -.350** -.516** -.537** -.647** -.499**
Sig. (2- .000 .021 .000 .000 .000 .000 .000 .000 .258 .014 .014 .034 .000 .000 .000 .000 .000
N 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212
Pearson -.370** -.163* -.495** -.480** -.609** -.597** -.479** -.611** -.093 -.180** -
.182**
-.156* -.378** -.492** -.534** -.607** -.448**
Sig. (2- .000 .018 .000 .000 .000 .000 .000 .000 .179 .008 .008 .023 .000 .000 .000 .000 .000
N 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212 212
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).
Dependent/Indepe
ndent Variables
Work Quantity Work Enthusiasm Work Skills Readiness to Innovate
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Appendix D: Factor Analysis and Regression
Component Matrixa
Component
1 2 3
Transformational - Idealized .831 -.135 -.184
Transformational - Individualized .797 -.050 -.017
Transformational - Inspirational .729 .435 -.092
Transformational - Intellectual .794 .466 -.006
Transactional - Contingent Reward -.219 .576 -.482
Transactional - Management-by-exception (active) -.889 .342 .105
Transactional - Management-by-exception (passive) -.894 .339 .091
Quantity of Work .719 .437 .153
Work Enthusiasm .634 -.275 -.253
Work Skills .315 .096 .854
Readiness to Innovate .744 .062 .013
Transformational Leadership .923 .280 -.084
Transactional Leadership -.891 .401 .035
Performance .897 .089 .209
Extraction Method: Principal Component Analysis.
a. 3 components extracted.
Rotated Component Matrixa
Component
1 2 3
Transformational - Idealized .744 .435 .003
Transformational - Individualized .618 .488 .136
Transformational - Inspirational .291 .800 -.067
Transformational - Intellectual .294 .872 .019
Transactional - Contingent Reward -.374 .252 -.639
Transactional - Management-by-exception (active) -.891 -.324 -.140
Transactional - Management-by-exception (passive) -.888 -.330 -.153
Quantity of Work .211 .813 .165
Work Enthusiasm .706 .195 -.063
Work Skills -.079 .340 .846
Readiness to Innovate .501 .538 .128
Transformational Leadership .526 .813 .013
Transactional Leadership -.909 -.286 -.221
Performance .539 .674 .335
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 6 iterations.
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Variables Entered/Removeda
Model Variables Entered Variables
Removed
Method
1
Transformational -
Individualized ,
Transformational -
Idealizedb
. Enter
a. Dependent Variable: Readiness to Innovate
b. All requested variables entered.
Model Summary
Model R R Square Adjusted R Square Std. Error of the
Estimate
Change Statistics
R Square Change F Change df1 df2 Sig. F Change
1 .542a .293 .287 .430 .293 43.366 2 209 .000
a. Predictors: (Constant), Transformational - Individualized , Transformational - Idealized
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 16.045 2 8.022 43.366 .000b
Residual 38.663 209 .185
Total 54.708 211
a. Dependent Variable: Readiness to Innovate
b. Predictors: (Constant), Transformational - Individualized , Transformational - Idealized
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Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig. Correlations
B Std. Error Beta Zero-order Partial Part
1
(Constant) -.263 .340 -.773 .441
Transformational - Idealized .764 .171 .410 4.459 .000 .532 .295 .259
Transformational - Individualized .308 .179 .158 1.717 .087 .475 .118 .100
a. Dependent Variable: Readiness to Innovate
Variables Entered/Removeda
Model Variables Entered Variables Removed Method
1
Transformational -
Individualized ,
Transformational -
Idealizedb
. Enter
a. Dependent Variable: Readiness to Innovate
b. All requested variables entered.
Model Summary
Model R R Square Adjusted R Square Std. Error of the
Estimate
Change Statistics
R Square Change F Change df1 df2 Sig. F Change
1 .542a .293 .287 .430 .293 43.366 2 209 .000
a. Predictors: (Constant), Transformational - Individualized , Transformational - Idealized
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ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 16.045 2 8.022 43.366 .000b
Residual 38.663 209 .185
Total 54.708 211
a. Dependent Variable: Readiness to Innovate
b. Predictors: (Constant), Transformational - Individualized , Transformational - Idealized
Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig. Correlations
B Std. Error Beta Zero-order Partial Part
1
(Constant) -.263 .340 -.773 .441
Transformational - Idealized .764 .171 .410 4.459 .000 .532 .295 .259
Transformational - Individualized .308 .179 .158 1.717 .087 .475 .118 .100
a. Dependent Variable: Readiness to Innovate
Variables Entered/Removeda
Model Variables Entered Variables Removed Method
1 Transformational -
Idealized .
Stepwise (Criteria:
Probability-of-F-to-
enter <= .050,
Probability-of-F-to-
remove >= .100).
a. Dependent Variable: Readiness to Innovate
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Model Summary
Model R R Square Adjusted R Square Std. Error of the
Estimate
Change Statistics
R Square Change F Change df1 df2 Sig. F Change
1 .532a .283 .280 .432 .283 83.014 1 210 .000
a. Predictors: (Constant), Transformational - Idealized
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 15.499 1 15.499 83.014 .000b
Residual 39.209 210 .187
Total 54.708 211
a. Dependent Variable: Readiness to Innovate
b. Predictors: (Constant), Transformational - Idealized
Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig. Correlations
B Std. Error Beta Zero-order Partial Part
1 (Constant) -.028 .313 -.088 .930
Transformational - Idealized .992 .109 .532 9.111 .000 .532 .532 .532
a. Dependent Variable: Readiness to Innovate
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Excluded Variablesa
Model Beta In t Sig. Partial Correlation Collinearity
Statistics
Tolerance
1 Transformational - Individualized .158b 1.717 .087 .118 .400
a. Dependent Variable: Readiness to Innovate
b. Predictors in the Model: (Constant), Transformational - Idealized
Variables Entered/Removeda
Model Variables Entered Variables Removed Method
1 Transformational -
Idealized .
Stepwise (Criteria:
Probability-of-F-to-
enter <= .050,
Probability-of-F-to-
remove >= .100).
a. Dependent Variable: Work Enthusiasm
Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig. Correlations
B Std. Error Beta Zero-order Partial Part
1 (Constant) .303 .291 1.043 .298
Transformational - Idealized .924 .101 .533 9.127 .000 .533 .533 .533
a. Dependent Variable: Work Enthusiasm
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Model Summary
Model R R Square Adjusted R Square Std. Error of the
Estimate
Change Statistics
R Square Change F Change df1 df2 Sig. F Change
1 .615a .378 .376 .374 .378 127.875 1 210 .000
a. Predictors: (Constant), Transactional - Management-by-exception (passive)
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 17.909 1 17.909 127.875 .000b
Residual 29.411 210 .140
Total 47.321 211
a. Dependent Variable: Work Enthusiasm
b. Predictors: (Constant), Transactional - Management-by-exception (passive)
Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig. Correlations
B Std. Error Beta Zero-order Partial Part
1
(Constant) 3.161 .032 98.418 .000
Transactional - Management-by-
exception (passive) -.265 .023 -.615 -11.308 .000 -.615 -.615 -.615
a. Dependent Variable: Work Enthusiasm
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Excluded Variablesa
Model Beta In t Sig. Partial Correlation Collinearity
Statistics
Tolerance
1 Transactional - Management-by-
exception (active) -.045b -.269 .789 -.019 .104
a. Dependent Variable: Work Enthusiasm
b. Predictors in the Model: (Constant), Transactional - Management-by-exception (passive)
Variables Entered/Removeda
Model Variables Entered Variables Removed Method
1
Transactional -
Management-by-
exception (active)
.
Stepwise (Criteria:
Probability-of-F-to-
enter <= .050,
Probability-of-F-to-
remove >= .100).
a. Dependent Variable: Readiness to Innovate
Model Summary
Model R R Square Adjusted R Square Std. Error of the
Estimate
Change Statistics
R Square Change F Change df1 df2 Sig. F Change
1 .630a .397 .394 .396 .397 138.060 1 210 .000
a. Predictors: (Constant), Transactional - Management-by-exception (active)
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ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 21.700 1 21.700 138.060 .000b
Residual 33.008 210 .157
Total 54.708 211
a. Dependent Variable: Readiness to Innovate
b. Predictors: (Constant), Transactional - Management-by-exception (active)
Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig. Correlations
B Std. Error Beta Zero-order Partial Part
1
(Constant) 3.007 .032 93.762 .000
Transactional - Management-by-
exception (active) -.276 .023 -.630 -11.750 .000 -.630 -.630 -.630
a. Dependent Variable: Readiness to Innovate
Excluded Variablesa
Model Beta In t Sig. Partial Correlation Collinearity
Statistics
Tolerance
1 Transactional - Management-by-
exception (passive) -.253b -1.531 .127 -.105 .104
a. Dependent Variable: Readiness to Innovate
b. Predictors in the Model: (Constant), Transactional - Management-by-exception (active)
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Variables Entered/Removeda
Model Variables Entered Variables Removed Method
1 Transformational –
Intellectual .
Stepwise (Criteria:
Probability-of-F-to-
enter <= .050,
Probability-of-F-to-
remove >= .100).
a. Dependent Variable: Quantity of Work
Model Summary
Model R R Square Adjusted R Square Std. Error of the
Estimate
Change Statistics
R Square Change F Change df1 df2 Sig. F Change
1 .700a .490 .487 .280 .490 201.517 1 210 .000
a. Predictors: (Constant), Transformational - Intellectual
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 15.850 1 15.850 201.517 .000b
Residual 16.517 210 .079
Total 32.366 211
a. Dependent Variable: Quantity of Work
b. Predictors: (Constant), Transformational - Intellectual
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Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig. Correlations
B Std. Error Beta Zero-order Partial Part
1 (Constant) .638 .153 4.176 .000
Transformational - Intellectual .699 .049 .700 14.196 .000 .700 .700 .700
a. Dependent Variable: Quantity of Work
Excluded Variablesa
Model Beta In t Sig. Partial Correlation Collinearity
Statistics
Tolerance
1 Transformational - Inspirational -.151b -1.507 .133 -.104 .242
a. Dependent Variable: Quantity of Work
b. Predictors in the Model: (Constant), Transformational - Intellectual
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Variables Entered/Removeda
Model Variables Entered Variables Removed Method
1 Transformational –
Intellectual .
Stepwise (Criteria:
Probability-of-F-to-
enter <= .050,
Probability-of-F-to-
remove >= .100).
a. Dependent Variable: Readiness to Innovate
Model Summary
Model R R Square Adjusted R Square Std. Error of the
Estimate
Change Statistics
R Square Change F Change df1 df2 Sig. F Change
1 .597a .356 .353 .410 .356 116.009 1 210 .000
a. Predictors: (Constant), Transformational - Intellectual
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 19.468 1 19.468 116.009 .000b
Residual 35.240 210 .168
Total 54.708 211
a. Dependent Variable: Readiness to Innovate
b. Predictors: (Constant), Transformational - Intellectual
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Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig. Correlations
B Std. Error Beta Zero-order Partial Part
1 (Constant) .424 .223 1.899 .059
Transformational - Intellectual .774 .072 .597 10.771 .000 .597 .597 .597
a. Dependent Variable: Readiness to Innovate
Variables Entered/Removeda
Model Variables Entered Variables Removed Method
1 Transactional -
Contingent Reward .
Stepwise (Criteria:
Probability-of-F-to-
enter <= .050,
Probability-of-F-to-
remove >= .100).
a. Dependent Variable: Work Skills
Model Summary
Model R R Square Adjusted R Square Std. Error of the
Estimate
Change Statistics
R Square Change F Change df1 df2 Sig. F Change
1 .212a .045 .040 .348 .045 9.860 1 210 .002
a. Predictors: (Constant), Transactional - Contingent Reward
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ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 1.194 1 1.194 9.860 .002b
Residual 25.435 210 .121
Total 26.630 211
a. Dependent Variable: Work Skills
b. Predictors: (Constant), Transactional - Contingent Reward
Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig. Correlations
B Std. Error Beta Zero-order Partial Part
1
(Constant) 3.629 .246 14.727 .000
Transactional - Contingent
Reward -.261 .083 -.212 -3.140 .002 -.212 -.212 -.212
a. Dependent Variable: Work Skills
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Appendix E: MLQ Scoring Key and Employee Performance Scoring Key
Leadership Factors Q# Q# Q# Q#
Transformational - Idealized 4 7 10 14
Transformational - Individualized 11 15 17
Transformational - Inspirational 6 24
Transformational - Intellectual 5 20 22
Transactional - Contingent Reward 1 8 12 23
Transactional - Management-by-exception (active) 2 18 19 21
Transactional - Management-by-exception (passive) 3 9 13 17
Performance Factors Q# Q# Q# Q# Q#
Quantity of Work 1 3 8 10
Work enthusiasm 4 9 15 16
Work Skills 5 6 11 17
Readiness to innovate 2 7 12 13 14
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Appendix F: Multifactor Leadership Questionnaire (MLQ) Leaders Questionnaire and Interview questions
Multifactor Leadership Questionnaire (MLQ) Leaders Questionnaire
DIRECTION: This survey is designed to describe your leadership style as you perceive it. Please
fill in the below questionnaire by marking the box that is more appropriately fits you. Remember
that no individuals will be identified from their response and there are no requests for confidential
information included in the questionnaire.
0 1 2 3 4
Not at
all
Once in
a while
Sometimes
Fairly
often
Frequently
if not
always
1 I provide others with assistance in exchange for their efforts
2 I fail to interfere until problems become serious
3 I focus attention on irregularities, mistakes, exceptions, and deviations from standards
4 I talk about my most important values and beliefs
5 I seek different prospective when solving problems
6 I talk optimistically about the future
7 I instill pride in others for bring associated with me
8 I discuss in specific terms who is responsible for achieving performance targets
9 I wait for things to go wrong before taking action
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10 I specify the importance of having a strong sense of purpose
11 I spend time teaching and coaching
12 I make clear what one can expect to receive when performance goals are achieved
13 I show that i am a firm believer in "if it ain't broke, don't fix it"
14 I talk enthusiastically about what needs to be accomplished
15 I treat others as an individuals rather than just as a member of a group
16 I demonstrate that problems must become chronic before taking action
17 I consider an individual as having different needs, abilities and aspirations from others
18 I concentrate my full attention on dealing with mistakes, complaints and failures
19 I keep track of all mistakes
20 I get others to look at problems from many different angles
21 I articulate a compelling vision of the future
22 I re-examine critical assumptions to question whether they are appropriate
23 I express satisfaction when others meet expectations
24 I expresses confidence that goals will be achieved
Rater Booklet (MLQ)- by Bernard M. Bass and Bruce J. Avolio
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Schedule of Interview Questions
1. What is your current job title?
2. What leadership style do you use?
3. What is the difference between a leader and a manager?
4. How do you measure success for you as a leader?
5. How do you encourage the development of your employees?
6. What is the most significant change that you brought to an organization?
7. How often do you feel it’s necessary to meet with your team?
8. Have you ever been a member of a successful team? If so, describe the role you played on the team and in its success.
9. Do you think your leadership style is linked with the Organization values and objectives?
10. What are the three most important values you demonstrate as a leader?
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Appendix G: Multifactor Leadership Questionnaire (MLQ) and Performance Rater Questionnaire
Multi-factor Leadership Questionnaire (MLQ) & Performance Rater Questionnaire
DIRECTION: This survey is designed to describe your leader’s leadership style as you perceive
it. Please fill in the below questionnaire by marking the box that is more appropriately fits you.
Remember that no individuals will be identified from their response and there are no requests for
confidential information included in the questionnaire.
The person I am rating …
0 1 2 3 4
Not at
all
Once in
a while
Sometimes
Fairly
often
Frequently
if not
always
1 Provides me with assistance in exchange for my efforts
2 Fails to interfere until problems become serious
3 Focuses attention on irregularities, mistakes, exceptions, and deviations from standards
4 Talks about their most important values and beliefs
5 Seeks different prospective when solving problems
6 talks optimistically about the future
7 Instills pride in me for bring associated with him/her
8 Discusses in specific terms who is responsible for achieving performance targets
9 Waits for things to go wrong before taking action
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10 Specifies the importance of having a strong sense of purpose
11 Spends time teaching and coaching
12 Makes clear what one can expect to receive when performance goals are achieved
13 shows that he/she is a firm believer in "if it ain't broke, don't fix it"
14 Talks enthusiastically about what needs to be accomplished
15 Treats me as an individual rather than just as a member of a group
16 Demonstrates that problems must become chronic before taking action
17 Considers me a having different needs, abilities and aspirations from others
18 Concentrates his/her full attention on dealing with mistakes, complaints and failures
19 Keeps track of all my mistakes
20 Gets me to look at problems from many different angles
21 Articulates a compelling vision of the future
22 Re-examines critical assumptions to question whether they are appropriate
23 Expresses satisfaction when I meet expectations
24 Expresses confidence that goals will be achieved
Rater Booklet (MLQ)- by Bernard M. Bass and Bruce J. Avolio
Performance
0
strongly
disagree
1
Disagree
2
Sometimes
3
Agree
4
strongly
agree
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1 My work speed is satisfactory
2 I search for fresh new ways of resolving problems in a task
3 I am always recognized for the quality of my work
4 I enjoy my work
5 I understands on a daily basis what needs to carry out on job, and what tools are to be used
6 I understands work goals and requirements
7 I come up with and try new ideas at work
8 My manager is satisfied with the quality of my work
9 I am always excited while carrying out my job
10 I am always able to complete quantity of work on time
11 I have sufficient job know-how to carry out work adequately
12 I try to question old ways of doing things in work
13 I stick to old established habits when carrying out a job
14 I Stick to established rules and procedures when carrying out a job
15 I enjoy co-operating with my supervisor(s) and peers for the benefit of the work
16 I am always focused and give best of the job
17 I understand my job responsibilities
Work Performance- by Suliman, A. M. (2001)
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Appendix H: Cover Letter
Questionnaire
Dear Sir/Madam,
This questionnaire gives you the opportunity to express your view on a wide range of
issues related to leadership style and the work performance. Please note there is no
right or wrong answers.
The questionnaire will be used to collect the primary data needed for a research study.
Therefore, we seek your assistance to be as open, fair, honest as possible as you can in
your responses.
The researcher assures you that no individuals will be identified from their response
and there are no requests for confidential information included in the questionnaire.
The result of the analysis will be strictly used by the researcher for study purpose
only.
The questionnaire comprises three parts:
1. General Information
2. Leadership Style
3. Employee Work Performance
Thank you,
Researcher